Moody's may lower Rogers Communications, units

Moody's Investors Service said it put the ratings of Rogers Communications Inc., Rogers Wireless Inc. and Rogers Cable Inc. all under review for possible downgrade following Rogers Communications' announcement of an agreement with AT&T Wireless Services Inc. to purchase AT&T Wireless' 34% stake in Rogers Wireless Communications Inc. for about C$1.8 billion.

If funded only with debt, Moody's estimates that Rogers Communication's consolidated net debt (including fair value of derivatives) would increase to about C$7.9 billion at the end of this year on a pro-forma basis. At the same time the estimated annualized interest expense of C$100 million associated with the acquisition might drive Rogers Communication's consolidated 2004 cash use (cash from operations less capital expenditures and dividends) to C$250 million from about C$150 million, in Moody's estimation.

Debt affected includes Rogers Communications Inc.'s senior unsecured debt, rated B2, $225 million 5.75% convertible debentures due November 2005, and C$75 million 10.5% senior notes due February 2006; Rogers Cable Inc.'s Ba2 rated senior secured second-priority notes and debentures and Ba3 rated subordinated guaranteed debentures; and Rogers Wireless Inc.'s Ba3 rated senior secured notes.

© 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.