DBRS Upgrades Rogers Communications Inc. to BB, Maintains Positive Trend

Dominion Bond Rating Service (DBRS) has today upgraded the Issuer Rating of Rogers Communications Inc. (RCI or the Company) to BB from BB (low), while maintaining the Positive trend. This is a direct result of the rating upgrades of both Rogers Wireless Inc. (Rogers Wireless) and Rogers Cable Inc. (Rogers Cable) to BB (high). (Please see separate press releases dated today on both Rogers Cable and Rogers Wireless).

Positive trends have been maintained on RCI, Rogers Wireless and Rogers Cable, reflecting the expectation of even further improved performance over the near term, which, combined with the expectation of further debt reduction, should result in stronger credit metrics. This also reflects DBRS’s expectation of no significant changes in RCI’s overall strategy or general market conditions for Canadian cable or wireless operators.

DBRS still maintains the one notch differential at RCI even though it has no public debt currently outstanding. This reflects RCI’s inherent structural subordination and continued dependence on its operating subsidiaries to finance its operating and capital expenditures, as well as the common dividends paid to RCI shareholders. DBRS believes that Rogers could potentially simplify its reporting structure in the future, similar to what has occurred at some other Canadian companies that have holding and operating company structures, to reduce its filing requirements. Therefore, depending on the alternative chosen, the structural subordination issue could potentially be mitigated and a more consolidated rating approach could be applied to RCI and its subsidiaries.

DBRS notes that funding requirements at the RCI level in 2006 will likely increase to around $325 million, mainly attributable to the acquisition of a new corporate building. However, DBRS expects this level to decline to almost $200 million in 2007, even with the increase in common dividend payments to $100 million. Overall, DBRS expects consolidated RCI to generate over $300 million in free cash flow in 2006, with the potential to almost double this amount in 2007.

Notes:
All figures are in Canadian dollars unless otherwise noted.
This rating is based on public information.
Issuer ratings apply to all general senior unsecured obligations of the issuer in question.