Moody's: Rogers outlook positive

Moody's Investors Service said it revised Rogers Communications Inc.'s outlook to positive from stable while affirming the company's Baa3 senior unsecured and Ba1 senior subordinated debt ratings.

The rating action was prompted by the likelihood that the company's financial results will exceed earlier expectations, the agency said. When Moody's upgraded the senior unsecured ratings to Baa3 in March 2007, it expected that Rogers was likely to manage its financial affairs such that the total debt-to-EBITDA ratio would be about 3 times. While management has not made any definitive statements on this matter, the agency now believes the company's cash flow profile should allow it to achieve measures that are superior to the 3 times benchmark through 2008 and 2009.

The underlying performance is being driven by ongoing margin expansion and free cash flow generation that, in turn, results from continuing favorable market trends and a strong product mix that provides a solidly defensible market position that also facilitates market share gains, the agency said.

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