Moody's downgrades Canwest Media

Moody's Investors Service said it downgraded the probability of default rating for Canwest Media Inc. to D in response to the company's announcement that it, along with key wholly owned television affiliate companies and The National Post Co., had filed voluntary petitions for reorganization under the Companies' Creditors Arrangements Act.

The company's corporate family rating was revised to Caa3 from Ca while its speculative grade liquidity rating remains unchanged at SGL-4 (weak).

Despite the corporate family rating upgrade and prospects of an above-average corporate-level recovery, there are sufficient non-debt claims in the form of payables, under-funded pension, and the like, that ratings for the company's $761 million 8% senior subordinated notes due Sept. 15, 2012 were unchanged at Ca (LGD4, 62%), the agency said.

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