S&P rates Rogers Cable notes

Standard & Poor's said it assigned its BBB- senior secured debt rating to Rogers Cable Inc.'s proposed senior secured second priority notes due 2014 and affirmed the BB+ long-term corporate credit rating on Rogers Cable Inc. and its parent, Rogers Communications Inc.

Proceeds will be used to refinance existing debt at Rogers Cable, fund the company's telephony business plan, and for general corporate purposes.

The outlook is negative.

"The ratings on Rogers Cable and RCI reflect an aggressive consolidated financial profile, which is characterized by a high level of consolidated debt, negative free cash flow generation, and relatively weak credit protection measures for the ratings," said S&P credit analyst Joe Morin.

These weaknesses are partially mitigated by the average business position of Rogers Communications Inc.'s core cable TV and high-speed internet subsidiary and the added business diversity provided by its media properties.

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