...the proposed arrangement for US$2.55 billion of senior secured credit facilities. Moody’s rated Ba3 the proposed US$2.55 billion credit facilities of Telesat Canada (“Telesat” or “the company”), the 100 percent-owned operating subsidiary of Telesat Holdings Inc. Moody’s also upgraded the company’s corporate family rating (CFR) and probability of default rating (PDR) to B1 from B2. At the same time, the company’s senior unsecured notes and senior subordinated notes were upgraded to B3 from Caa1. As well, Telesat’s speculative grade liquidity rating was affirmed at SGL-3 (adequate) and the ratings outlook was revised to stable from developing. Upon the $2 billion of existing senior secured credit facilities being repaid from the proceeds of the proposed facilities, their applicable ratings will be withdrawn by Moody’s.
S&P affirmed its 'B+' corporate credit rating and stable outlook for Telesat Holdings Inc. and Telesat. At the same time, S&P assigned its 'BB-' issue-level rating to Telesat’s proposed US$2.55 billion senior secured credit facility with a recovery rating of '2'. Ratings on all the retired debt issues will be withdrawn when the proposed transaction closes. S&P also affirmed its 'B-' issue-level rating and '6' recovery rating on the company's existing senior unsecured notes and senior subordinated notes. Telesat Holdings Inc. can assure neither that the senior secured credit facilities can be arranged on terms that will be acceptable to the company nor that the senior secured credit facilities will be entered into.