MONTRÉAL, May 6, 2024
/CNW/ - Quebecor welcomes the decision by S&P Global Ratings
("S&P") to upgrade Videotron's credit rating from BB+ to BBB-.
S&P also upgraded Videotron's unsecured debt rating from BB+ to
BBB-.
"I am very proud to announce this important development one year
after the successful acquisition of Freedom, which established
Videotron as Canada's fourth major
national wireless carrier," said Pierre Karl Péladeau, President
and Chief Executive Officer of Quebecor. "This enviable credit
rating is a significant achievement that speaks volumes about
Videotron's superior operating performance, strict financial
discipline and strong balance sheet.
"Videotron already enjoyed an excellent reputation on financial
markets, with an unblemished track record in the course of raising
billions of dollars in financing since its acquisition by Quebecor
Media Inc. in 2001. Receiving this BBB- rating from S&P can
only improve Videotron's access to capital markets and reduce its
cost of borrowing," Mr. Péladeau added.
Videotron is currently rated BBB- with a stable outlook by
S&P and Ba1 with a positive outlook by Moody's.
A rating is not a recommendation to buy, sell or hold
investments and is subject to revision or withdrawal at any time by
the relevant rating agency.
Cautionary statement regarding forward-looking
statements
The statements in this press release that
are not historical facts are forward-looking statements and are
subject to significant known and unknown risks, uncertainties and
assumptions that could cause the Corporation's actual results for
future periods to differ materially from those set forth in the
forward-looking statements. Forward-looking statements may be
identified by the use of the conditional or by forward-looking
terminology such as the terms "plans," "expects," "may,"
"anticipates," "intends," "estimates," "projects," "seeks,"
"believes," or similar terms, variations of such terms or the
negative of such terms. Certain factors that may cause actual
results to differ from current expectations include the possibility
that the Corporation is unable to successfully carry out its
business strategies, including but not limited to the geographic
expansion of its telecommunications activities and the
reorganization of TVA Group, seasonality (including
seasonal fluctuations in customer orders), operating risk
(including fluctuations in demand for Quebecor's
products and the pricing of competitors' products and
services), new competition and Quebecor's ability to
retain its current customers and attract new ones,
Quebecor's ability to penetrate new, highly competitive
markets and the accuracy of estimates of the size of potential
markets, risks related to fragmentation of the advertising market,
insurance risk, risks associated with capital investments
(including risks related to technological development and equipment
availability and breakdown), environmental risks, risks associated
with cybersecurity and the protection of personal information,
risks associated with service interruptions resulting from
equipment breakdown, network failure, the threat of natural
disaster, epidemics, pandemics or other public health crises,
political instability in some countries, risks associated with
emergency measures implemented by various governments, credit risk,
financial risks, debt risks, risks related to interest rate
fluctuations, foreign exchange risks, risks associated with
government acts and regulations, risks linked to an unfavorable
judgment or settlement of a dispute, risks associated with labour
agreements, risks related to changes in tax legislation, and
changes in the general political and economic
environment.
In addition, there are risks associated with the acquisition of
Freedom and the strategy for expansion outside Québec, including
Quebecor's ability to successfully integrate Freedom's operations
following the acquisition and to realize synergies, and potential
unknown liabilities or costs associated with the acquisition of
Freedom. As well, the anticipated benefits and effects of the
acquisition of Freedom may not be realized in a timely manner or at
all, and future operating costs and capital expenditures could be
different than anticipated. In addition, unanticipated litigation
or other regulatory proceedings associated with the acquisition of
Freedom could result in changes to the parameters of the
transaction. Finally, the impacts of the significant and recurring
investments that will be required in the new markets of Freedom and
Videotron, operating as an MVNO or otherwise, for development and
expansion and to compete effectively with the ILECs and other
current or potential competitors in these markets, including the
fact that the post–acquisition Videotron business will continue to
face the same risks that Videotron currently faces, but will also
face increased risks relating to new geographies and markets.
Investors and others are cautioned that the foregoing list of
factors that may affect future results is not exhaustive and that
undue reliance should not be placed on any forward-looking
statements. For more information on the risks, uncertainties and
assumptions that could cause Quebecor's actual results to differ
from current expectations, please refer to Quebecor's public
filings, available at www.sedarplus.ca and www.quebecor.com,
including, in particular, the "Risks and Uncertainties" section of
the Corporation's Management Discussion and Analysis for the year
ended December 31, 2023.
The forward-looking statements in this press release reflect the
Corporation's expectations as of May 6,
2024 and are subject to change after this date. The
Corporation expressly disclaims any obligation or intention to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws.
About Quebecor
Quebecor, a Canadian leader in
telecommunications, entertainment, news media and culture, is one
of the best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Québec-based Quebecor (TSX: QBR.A, QBR.B) employs more than
11,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment and entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/Quebecor
SOURCE Quebecor