Moody's upgrades Rogers Cable, Rogers Wireless

Moody's Investors Service said it upgraded the senior secured regular bond ratings of Rogers Cable Inc. and Rogers Wireless Inc. to Baa3 from Ba1 and the senior subordinated regular bond rating of Rogers Wireless to Ba1 from Ba2.

This concludes the review begun on Jan. 9, and the outlook is stable.

The upgrade is based upon the agency's expectation that parent company Rogers Communications Inc. is likely to manage its capital structure with a debt-to-EBITDA ratio close to 3x, although it will have the ability to reduce leverage materially below that level over the next three years.

Rogers Cable and Rogers Wireless are both rated Baa3, even though Rogers Wireless has stronger credit metrics than Rogers Cable, because there is no effective impediment to the free flow of funds within the Rogers Communications group and Moody's believes Rogers Wireless' positive cash flow will be used to support Rogers Cable's cash drain over the next few years. Additionally, the agency said it believes that the two operating subsidiaries are becoming more integrated within Rogers Cable's incumbent territory.

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