The upgrade to “stable” from “negative” comes as Moody’s also affirmed the company’s corporate family rating at B1, which is speculative grade.
The Vancouver owner, which is the parent of the Teekay family of companies, also saw its B2 rating affirmed on its senior unsecured debt.
Moody’s said the expected debt reduction is part of the company’s efforts to become what is essentially a holding company that will receive some $200m in dividends from its growing daughter companies in 2015 alone.
