DBRS Releases Report on Manitoba Telecom Services Inc.

DBRS has today released a report on Manitoba Telecom Services Inc. (MTS or the Company) that provides further detail on the recent confirmation of the Company’s ratings at BBB and R-2 (high) with a Stable trend.

The ratings continue to reflect the Company’s higher business risk relative to its peers. This includes a healthy incumbent business in Manitoba (although this segment faces competition from cable operators and other wireless carriers) and the Allstream national enterprise business, which is highly competitive and is in transition from legacy to IP-based services for national enterprise customers. DBRS may have concerns should the business risk increase and/or free cash flow turn sharply negative, requiring additional borrowing.

Today’s report and the December 19, 2011, press release are available at www.dbrs.com.