DBRS Morningstar Discontinues Ratings on Shaw Communications Inc.

DBRS Limited (DBRS Morningstar) discontinued and withdrew the Issuer Rating, Senior Notes rating, and Preferred Shares rating of Shaw Communications Inc. (Shaw or the Company), post its acquisition by Rogers Communications Inc. (Rogers; rated BBB (low) with a Stable trend by DBRS Morningstar; the Transaction) and as per the request of the Company.

Shaw’s ratings were placed Under Review with Developing Implications following the March 15, 2021, announcement of an agreement to combine Shaw with Rogers in a $26 billion transaction (including the assumption of approximately $6 billion of Shaw’s debt).

The rating actions follow the completion of the Transaction, concurrently with the divestiture of Shaw’s wireless operating segment, Freedom Mobile Inc., to Videotron Ltd., a wholly owned subsidiary of Quebecor Media Inc. (not rated by DBRS Morningstar). As part of the Transaction, Rogers has assumed approximately $4.55 billion of Shaw’s existing senior unsecured debt obligations, which are now ranked pari passu with Rogers’ existing Senior Unsecured Notes (rated BBB (low) with a Stable trend by DBRS Morningstar). Please refer to the press release titled “DBRS Morningstar Downgrades Ratings on Rogers Communications Inc. to BBB (low), Stable Trend on Completion of Shaw Communications Inc. Acquisition,” published on April 5, 2023. On June 30, 2021, Shaw redeemed all of its issued and outstanding preferred shares (Series A and Series B) in accordance with their terms.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929 (May 17, 2022).

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

DBRS Morningstar applied the following principal methodologies:
-- Rating Companies in the Communications Industry (July 21, 2022; https://www.dbrsmorningstar.com/research/400203).
-- DBRS Morningstar Global Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (October 20, 2022; https://www.dbrsmorningstar.com/research/404248).

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at [email protected].

The rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the rating process for this rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This is a solicited credit rating.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at [email protected].

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