Moody's lowers Quebecor

Moody's Investors Service said it lowered the corporate family and senior unsecured rating of subsidiaries of Quebecor World Inc. to Ba3 from Ba2, and lowered the senior subordinated rating of Quebecor World (USA) Inc. to B2 from Ba3.

The outlook is negative.

This action is prompted by Moody's belief that results at the company will not improve sufficiently over the next two years to maintain previously assigned ratings given recent company results, a continuation of a challenging industry environment in both North America and Europe, an apparent loss of market share by QWI and the likelihood that the company will undertake material capital expenditures in Europe which will strain credit metrics.

Moody's added that the ratings are supported by Quebecor's large scale and product and geographic diversity, as well as a focus on cost reduction.

The ratings are, however, constrained by continuing poor industry conditions which have put pressure on revenue and margins, high leverage and increasing capital expenditures which will limit the company's ability to reduce debt, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.