Moody’s changes ViaWest view to stable

Moody's Investors Service said it affirmed ViaWest, Inc.'s B2 corporate family rating and B2-PD probability of default rating, and changed the outlook to stable from negative.

As part of the same action, the agency affirmed ViaWest's B2 senior secured revolving credit facility rating and Shaw Data Centre LP's B2 senior secured term loan B rating. Shaw Data is a sister company to ViaWest, is the term loan borrower and is guaranteed by ViaWest.

Moody’s said the action was prompted by its updated expectation that despite ongoing cash flow deficits, ViaWest's leverage of debt/EBITDA will remain about 5.5 times over the next two years. With this and given Shaw Communications Inc.'s (Baa3 stable) sponsorship, cash flow deficits are expected to be manageable, the agency added.

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