Moody’s changes Teekay to stable

Moody's Investors Service said it confirmed Teekay Corp.’s corporate family rating at B3 and senior unsecured debt rating at Caa1.

Concurrently, the agency upgraded the speculative grade liquidity rating to SGL-3 (adequate), from SGL-4 (weak).

The outlook was changed to stable from under review. This action resolves the review for downgrade initiated on April 15.

Moody’s said the stable outlook reflects its expectation that although end markets will remain weak over the intermediate-term, thereby pressuring customers to seek contract concessions at renegotiation or cancellations and squeezing profit margins, Teekay will maintain adequate liquidity over the next year (including over $200 million in unrestricted cash) to cover its G&A expenses and debt obligations.

The stable outlook also anticipates no further reductions in the cash distributions or dividends that Teekay expects to receive from its subsidiaries, the agency added.

© 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.