Moody's affirms Quebecor World, units

Moody's Investors Service said it affirmed all ratings for Quebecor World Inc. and subsidiaries (senior unsecured Baa3) and the negative outlook.

Moody's affirmed Quebecor World Inc.'s $1 billion bank facility due November 2007 at Baa3, Quebecor World (USA) Inc.'s Ba1 senior subordinated rating, Quebecor Capital World Corp.'s Baa3 senior unsecured debt rating.

Moody's said it believes that while free cash flow has improved in the last year and is largely sustainable, Quebecor World's debt level remains high and will not come down sufficiently by the end of 2006 to sustain the rating unless operations perform better than expected or management demonstrates a stronger commitment to reduce debt.

The ratings are supported by Quebecor World Inc.'s leading global position in the commercial printing industry, its long term and contractual relationships with major publishing customers, its historic ability to generate free cash flow and reduce debt and the company's improvement in its' EBITDA margin, according to Moody's.

© 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.