S&P boosts Rogers Communications from junk

Standard & Poor's said it raised its long-term corporate credit ratings to BBB- from BB+, on Rogers Communications Inc. and its wholly owned subsidiaries.

At the same time, the rating on Rogers Wireless Inc.'s senior secured debt was raised to BBB- from BB+ and the rating on Rogers Cable Inc.'s senior secured second-priority debt was raised to BBB- from BB+.

The outlook on all companies is stable.

According to S&P, the upgrade reflects three main considerations, which include the company's strong performance and cash flow growth has now allowed management to potentially achieve financial policies and targets that are viewed to be consistent with an investment-grade rating.

Furthermore, notwithstanding Rogers Communications's ability to absorb acquisitions, there are few remaining strategic opportunities in the Canadian landscape and, finally, the asset base has been built to a level where the strategy of the company has specifically been refocused on medium-term internal growth, the agency noted.

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