Moody's: CanWest Media cut to SGL-3

Moody's Investors Service said it changed CanWest Media Inc.'s SGL rating to SGL-3 from SGL-2, reflecting adequate liquidity. CanWest's long term ratings remain unchanged.

Moody's said the rating revision primarily reflects the magnitude of the contingent cash payments that may need to be made in the next year on CanWest's swap agreements compared to expected available liquidity, given that the company was required to pay out C$137 million in swap re-couponing payments in the quarter ended Nov. 30, 2004.

CanWest's SGL-3 liquidity rating is based on Moody's expectation that the company will have access to nearly C$400 million of liquid resources over the next year, relative to approximately C$150 million of cash needs, plus contingent cash payments on swap agreements.

Moody's said it expects the company will be able to fund such swap re-couponing payments within reasonable expectations for foreign exchange and interest rate movements.

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