Moody’s moves WildBrain view to positive

Moody’s Investors Service said it changed its outlook for WildBrain Ltd. to positive from stable and affirmed its B3 corporate family rating, B3-PD probability of default rating and B2 senior secured credit facility rating. The speculative grade liquidity rating remains SGL-2.

"The outlook change reflects our expectation that the proceeds from proposed asset sales will allow WildBrain to reduce debt and financial leverage over the next 12 months," said Mikhil Mahore, a Moody's analyst, in a press release.

The agency noted that WildBrain's C$140 million convertible debentures due September 2024 are deep out of the money. However, refinancing and/or repayment risk is unlikely to hurt Wildbrain's credit profile given the opportunity to repay them using the proceeds from planned asset sales and the option to repay them using shares despite being out of the money.

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