DBRS Upgrades Rogers Communications Inc. to BB (high), Stable Trend

DBRS has today upgraded the Issuer Rating of Rogers Communications Inc. (RCI or the Company) to BB (high) from BB. The rating action is a result of upgrades to both Rogers Wireless Inc. (Rogers Wireless) to BBB (low) and BB (high) and to Rogers Cable Inc. (Rogers Cable) to BBB (low). The trends on all companies are now Stable. (Please see separate press releases for Rogers Wireless and Rogers Cable.)

DBRS continues to maintain a rating differential on RCI that is one notch lower than Rogers Wireless and Rogers Cable, reflecting the Company’s structural subordination and dependence on its operating subsidies to finance its operating expenditures and dividends to public RCI shareholders (DBRS expects these to total roughly $300 million for 2007). DBRS notes RCI currently has no debt outstanding.

On a consolidated basis, RCI’s credit metrics have improved in 2006, with gross debt-to-EBITDA reaching 2.71 times and cash flow-to-debt approaching 0.30 times. DBRS expects further improvement in RCI’s consolidated metrics in 2007, with gross debt-to-EBITDA and cash flow-to-debt expected to reach roughly 2.2 times and 0.33 times by the end of 2007, respectively.

DBRS expects the consolidated RCI group to generate free cash flow of nearly $1 billion in 2007 (including cash tax savings), with strong contributions from Rogers Wireless. DBRS notes Rogers Wireless continues to demonstrate significant revenue and EBITDA growth. Additionally, Rogers Cable continues to demonstrate strong performance, with growth driven by its core cable and Internet segments and robust subscriber growth in cable telephony.

DBRS expects Rogers Wireless to generate roughly $750 million of free cash flow in 2007, which is expected to be used to finance RCI’s external funding requirements, and help Rogers Cable to repay a $450 million note that matured in February 2007.

Notes:
All figures are in Canadian dollars unless otherwise noted.
This rating is based on public information.