Moody's ups Rogers Communications

Moody's Investors Service said it upgraded the corporate family rating and probability of default rating of Rogers Communications Inc. as well as the senior secured ratings of Rogers Cable Inc. and Rogers Wireless Inc. to Ba1 from Ba2 and upgraded the senior subordinated rating of Rogers Wireless to Ba2 from B1.

Related LGD ratings, which are listed below, remain unchanged, the agency said, noting that these ratings have also been placed under review for further possible upgrade.

This action is based upon Moody's expectation that Rogers Communication's EBITDA in fiscal 2008 will be $600 million higher than the level expected by Moody's in 2006 and the company will generate nearly $1.5 billion of free cash flow over the next two years, the combination of which could reduce debt/EBITDA to 2x should all cash flow be dedicated to debt reduction.

Moody's said it, however, expects the company to manage to a target leverage ratio that is somewhat higher.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.