Fitch cuts Rogers Wireless, rates notes BB+, BB-

Fitch Ratings said it downgraded Rogers Wireless Inc.'s senior secured debt rating to BB+ from BBB-. Additionally, Fitch has assigned a BB+ rating to the company's new senior secured note offering and a BB- rating to the new senior subordinated note offering.

Proceeds from the offering will be used to provide long-term financing at Rogers Wireless following the recent transactions with AT&T Wireless and Microcell Telecommunications. Initially, the transactions had principally been funded by the parent, Rogers Communications Inc.

The outlook is stable.

Fitch said the rating downgrade primarily reflects the substantial increase in financial risk at Rogers Wireless due to the significantly higher debt levels at the company following the C$1.6 billion acquisition of Microcell and the C$1.767 billion acquisition of AT&T Wireless' stake in Rogers Wireless. Leverage is expected to increase to about 5.5 times by the end of 2005, compared with 2.3x at the end of the third quarter of 2004.

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