Moody's predicts lower margins, restricted free cash flow for converged Canadian cable and telcos

TORONTO – The financial performances of Canada’s telecom and cable companies will converge as their operating capabilities begin to align, according to a new report from Moody's Investors Service.Similar ‘quad-play’ packages of voice, video, Internet and wireless services between the two sectors will also lead to increased competition that will compress margins and restrict free cash flow, but should be manageable at current ratings."The companies have time to adapt to the changing environment, and we do not expect changes to their financial policies," said vice-president and senior credit officer Bill Wolfe, in a statement on Wednesday. "We therefore expect the companies...