The company is subject to a minimum liquidity covenant and a net first lien leverage covenant that steps down quarterly starting the quarter ending December 2022. We expect that it will be in compliance with its covenants when tested.Governance concerns reflect PHI's limited financial disclosures since it is privately owned. The high leverage is driven primarily by the pandemic's impact on the company's operations and profitability, and Moody's does not expect PHI to engage in material distributions to its private owners before reducing leverage.The stable outlook reflects Moody's expectation that PHI's credit metrics will improve over the next 12-18 months driven by recovering revenue and earnings, and that it will maintain adequate liquidity.The C$625 million first-lien term loan facility and C$75 million delayed draw term loan (both due in October 2026) are rated B2, one notch higher than the B3 CFR.