CHICAGO-Duff & Phelps Credit Rating Co. raised Rogers Cantel Inc.’s senior secured debt rating from “BB+” to “BBB,” and the rating of Cantel’s subordinated public debt from “BB-” to “BBB-.” Both ratings were removed from Rating Watch-Up and their outlook is stable, said DCR.
The upgrade considers the financial and strategic benefits of the joint equity investment that was made by AT&T Corp. and British Telecommunications plc in Cantel’s parent company, Rogers Cantel Mobile Communications Inc. AT&T and BT jointly acquired a 33-percent stake in Rogers Cantel Mobile Communications for $934 million.
Although Cantel’s pro forma credit measures may be relatively low for a “BBB” credit profile, DCR said it believes Cantel now has a stronger position in an industry with solid long-term growth prospects.
