DBRS Releases Report on Videotron

DBRS has today released a report on Vidéotron Ltée (Vidéotron or the Company) that provides further detail on the recent confirmation of the Company’s Issuer Rating at BB (high), its Secured Bank Debt rating at BBB (low), with a RR1 recovery rating, and its Senior Unsecured Notes at BB (high), with a RR3 recovery rating. The trends on all ratings are Stable.

Vidéotron’s BB (high) Issuer Rating is supported by its strong market position in Québec, with a cable footprint that covers 2.6 million homes, services 1.8 million basic subscribers and generates strong operating metrics and good operating leverage. Despite this, DBRS notes that Vidéotron’s Issuer Rating remains constrained by the leverage at its parent, Quebecor Media Inc., which continues to depend on cash distributions from both Vidéotron and other operating subsidiaries to support its own interest costs and funding requirements.

To obtain a copy of the report or the September 28, 2011, press release, please see the links under Related Research.