DBRS Rates Corus Entertainment’s Planned Notes Issue BBB (low), Stable Trend

DBRS has today assigned a rating of BBB (low) to Corus Entertainment Inc.’s (Corus or the Company) planned issuance of senior unsecured notes (the Notes). The trend is Stable.

This debt issuance was initiated by Corus by way of a supplement to its $500 billion final short form base shelf prospectus dated January 29, 2010. DBRS expects this issue to consist of a single tranche of seven-year notes; it is expected to close on or around February 11, 2010.

The Notes will be direct senior unsecured obligations of Corus and will rank pari passu with all existing and future senior unsecured indebtedness of the Company. The Notes will also be guaranteed on a senior unsecured basis by the Company’s restricted operating subsidiaries.

DBRS expects Corus to use the proceeds from this notes issue and its new credit facility to retire its existing credit facility. This notes financing and the renewed credit facility are expected to help to smooth out Corus’s debt maturities and enhance its liquidity profile.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Media and Entertainment, which can be found on our website under Methodologies.

This is a Corporate (Telecom/Media/Technology) rating.