TCL.PR.D Upgraded to P-3(high) by S&P

Standard & Poors has announced:

it raised its long-term corporate credit rating on Montreal-based Transcontinental Inc. to ‘BBB’ from ‘BBB-‘. The outlook is stable.

“The upgrade reflects our expectation of the continued improvement in Transcontinental’s financial risk profile stemming from lower debt levels, increased profitability, and significant financial flexibility due to management’s focus on streamlining the business and cutting costs,” said Standard & Poor’s credit analyst Lori Harris. “These actions have resulted in a material strengthening of credit protection measures, with our expectation that Transcontinental will maintain an adjusted debt to EBITDA in the 2x area in the medium term,” Ms. Harris added.

Highlights are:

  • We are raising our long-term corporate credit rating on Montreal-based Transcontinental Inc. to ‘BBB’ from ‘BBB-‘.
  • We base the upgrade on Transcontinental’s improved operating performance and credit metrics, as reflected in its fiscal 2010 results.
  • The stable outlook is based on our expectation that Transcontinental’s financial policy will be moderate, operating performance will remain good, and the company will manage its credit measures in line with our expectations in the medium term, including maintaining adjusted debt to EBITDA in the 2x area

TCL.PR.D was last mentioned on PrefBlog at the time of issue. TCL.PR.D is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

One Response to “TCL.PR.D Upgraded to P-3(high) by S&P”

  1. […] has a single preferred share issue outstanding: TCL.PR.D, which S&P upgraded to P-3(high) in December 2010. The issue commenced trading October 2, 2009 and is a FixedReset, 6.75%+416. The issue was recently […]

Leave a Reply

You must be logged in to post a comment.