Moody's downgrades Quebecor

Moody's Investors Service said it downgraded the corporate family rating of Quebecor World (USA) Inc. to B1 from Ba3 and moved the rating to the parent company, Quebecor World Inc.

The agency also assigned a SGL-3 speculative grade liquidity and B1 probability-of-default rating to Quebecor World.

Finally, Moody's downgraded Quebecor World (USA)'s $130 million convertible senior subordinated notes to B3 (LGD6, 94%) from B2, Quebecor World Capital (ULC)'s $450 million senior notes due 2016 to B1 (LGD4, 50%) from Ba3 and Quebecor World Capital Corp.'s $900 million senior notes and debentures due 2009-2013 to B1 (LGD4, 50%) from Ba3.

This concludes the review for possible downgrade begun in July, and the outlook is negative.

The agency said the downgrade is a result of the company's poor operating results, and the movement of the corporate family rating back to Quebecor World is based upon the consolidated financials of that company.

The ratings primarily reflect Quebecor World's various measures of high leverage and continued poor operating performance in an industry undergoing secular decline, Moody's said.

The ratings are supported by the company's scale and diversity, by the potential that the company's expenditures on new printing presses will improve margins and by management's ongoing efforts to rationalize operations.

© 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.