Fitch lifts Rogers from junk

Fitch Ratings said it upgraded the issuer default ratings of Rogers Communications Inc., Rogers Wireless Inc. and Rogers Cable Inc. to BBB- from BB, Rogers Wireless' senior secured notes to BBB- from BB+ and Rogers Cable's senior secured second-priority notes to BBB- from BB+. Rogers Wireless' senior subordinated ratings were affirmed at BB.

The outlook is stable.

The agency said the upgrades reflect the group's rapidly improving credit measures, driven by the increasing profitability at the wireless segment that has exceeded expectations; $750 million of debt reduction during 2006; its robust bundled service offering across the wireless and cable assets; and an improvement in the adjusted debt-to-EBITDAR ratio to 3x at the end of 2006 from 4.2x at the end of 2005.

Rogers Communications' liquidity position is strong given the cash generation at Rogers Wireless, the undrawn revolver capacity at its three subsidiaries, Rogers Cable's declining cash requirements and the significant flexibility in advancing funds throughout the company, Fitch said. At the end of 2006, Rogers Communications had about $2.1 billion of undrawn revolver capacity through its three main operating subsidiaries.

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