Cogeco Communications Inc.: Rating Report

On December 18, 2019, DBRS Limited (DBRS Morningstar) confirmed Cogeco Communications Inc.’s (Cogeco or the Company) Issuer Rating at BB (high) and its Senior Secured Notes & Debentures rating at BBB (low) with a recovery rating of RR1. All trends are Stable. These confirmations are supported by Cogeco’s effective deleveraging following the MetroCast acquisition in January 2018 and stable operating results. The ratings consider the Company’s established footprint in existing markets and the growth potential of the U.S. broadband segment (Atlantic Broadband or ABB), including the effect of the USD 1.4 billion MetroCast acquisition, while reflecting intensifying competition, risks associated with technological and regulatory changes, and the lack of a wireless offering.