Corus Entertainment Inc.: Rating Report

On August 19, 2019, DBRS Limited (DBRS) confirmed the Issuer Rating of Corus Entertainment Inc. (Corus or the Company) at BB with a Stable trend. The rating confirmation reflects both the intensifying competitive pressures in the industry and the better-than-expected television (TV) advertising revenue performance and balance sheet deleveraging year-to-date (YTD) Q3 F2019. The BB rating continues to reflect Corus’s stable market position in its TV business, strong cash-generating capacity and continued commitment to deleveraging. The rating also continues to consider the structural shift in advertising spending (ad spend) to digital and online channels from traditional media, the persistent annual cord-cutting and/or shaving by Canadian households and, to a lesser degree, the uncertainty associated with the Canadian Radio-television and Telecommunications Commission (CRTC) cable regulatory changes.