NEW YORK-Following its announcement that stakeholder AT&T Wireless Services Inc. said it planned to explore options for its interest in Rogers Wireless Inc., Standard & Poor’s Ratings Services placed a ‘BB+’ long-term corporate credit rating and CreditWatch with negative implications on Canadian telecommunications provider Rogers Communications Inc. and its subsidiary RWI.
“Should [AWS] dispose of its stake either through a sale of RCI or through a public offering of its shares, Standard & Poor’s ratings approach to RWI would change from a standalone basis to a consolidated basis,” noted S&P credit analyst Joe Morin.
S&P added that if either RCI or RWI purchases AWS’ shares, the ratings for both RCI and RWI “could be lowered if the transaction were to result in a material increase in debt, regardless of which entity incurred the debt,” though the ratings are likely to remain in the ‘BB’ category.
AWS informed RCI of its intentions earlier this week to explore alternatives for its investment in the RWI, which has come into question following Cingular Wireless L.L.C.’s pending $41 billion acquisition of AWS.
