Moody’s turns Telesat view to stable

Moody’s Investors Service said it revised its outlook for Telesat Corp. to stable from negative and affirmed its Caa1 corporate family rating and Caa2-PD probability of default rating. The company's SGL-1 speculative liquidity rating is unchanged.

The agency concurrently affirmed the B3 senior secured credit facilities and senior secured notes rating, and Caa3 senior unsecured notes rating of Telesat's main operating subsidiary, Telesat Canada, and changed its outlook to stable from negative.

Earlier this month Telesat announced it secured full funding to build its Telesat Lightspeed project and that it now expects the project to come in at $3.5 billion or $2 billion under its previous estimate.

"The outlook changed reflects the full funding and commencement of Telesat Lightspeed, which will ensure the company's long-term existence," said Peter Adu, a Moody's vice president and senior credit officer, in a press release.

"The affirmation of the CFR and PDR considers the likelihood of additional debt repurchases at less than par," Adu added.

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