ViaWest, Inc. -- Moody's changes ViaWest's outlook to stable

New York, August 01, 2014 -- Moody's Investors Service ("Moody's") has changed the outlook of ViaWest, Inc. ("ViaWest" or "the company") to stable from negative following the company's July 31st announcement that Shaw Communications Inc. ("Shaw") (Baa3, stable) has entered an agreement to acquire 100% interest in the company for an enterprise value of $1.2 billion. The outlook revision reflects Shaw's strong credit profile and sponsorship and, with the transition to a strategic from a private equity owner, a much-reduced potential of increased leverage to support shareholder return initiatives. Although ViaWest is being acquired by an investment-grade company, Moody's believes that ViaWest's debt will remain non-recourse to Shaw and ViaWest is likely to operate as an independent subsidiary. As part of the rating action, Moody's has affirmed the company's B2 Corporate Family Rating, B3-PD Probability of Default Rating and B2 rating on the senior secured credit facilities. The transaction is expected to close in September 2014, subject to US regulatory approval.

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