S&P downgrades Rogers

Standard & Poor's said it lowered its long-term corporate credit ratings on Rogers Communications Inc., Rogers Cable Inc., and Rogers Wireless Inc. to BB from BB+ following Rogers Wireless' successful tender for various equity securities of Microcell Telecommunications Inc.

Given the success of the offer and lack of any other material conditions, Rogers Wireless is expected to complete the acquisition of Microcell in the near term. The outlook is stable.

At the same time, the following ratings were also revised: the senior unsecured debt ratings on Rogers Communications were lowered to B+ from BB-; the senior secured debt ratings on Rogers Cable were lowered to BB+ from BBB-; the senior subordinated guaranteed debentures on Rogers Cable were lowered to B+ from BB-; and the senior secured debt ratings on Rogers Wireless were lowered to BB from BB+.

Although the acquisition of Microcell will have a long-term positive effect on Rogers Wireless and Rogers Communications, the ratings are being lowered due to the additional leverage that will be incurred from the Microcell acquisition, decreased financial flexibility, and Rogers Communication's aggressive financial policy, S&P said.

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