DBRS Morningstar Assigns Rating of BB, Stable, and Recovery Rating of RR4 to Corus’s Debt Issuance

DBRS Limited (DBRS Morningstar) assigned a rating of BB with a Stable trend and Recovery Rating of RR4 to Corus Entertainment Inc.’s (Corus or the Issuer; rated BB with a Stable trend by DBRS Morningstar) $250 million 6.00% Senior Unsecured Notes due 2030 (the Notes), which closed on February 28, 2022.

The rating being assigned is based upon the rating of an already-outstanding series of the above-mentioned debt instrument.

The Notes will rank equal in right of payment with any existing and future senior Indebtedness of the Issuer; senior in right of payment to all existing and future subordinated Indebtedness of the Issuer; effectively junior to any existing and future secured Indebtedness of the Issuer, including Indebtedness under the Bank Facility, to the extent of the value of the assets securing such Indebtedness. The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by all of the Issuer’s existing and future Restricted subsidiaries.

DBRS Morningstar expects Corus to use the net proceeds from the offering of the Notes for the repayment of outstanding indebtedness under its bank credit facilities.

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/373262.

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

The principal methodologies are Rating Companies in the Broadcasting Industry (March 12, 2021; https://www.dbrsmorningstar.com/research/375262), DBRS Morningstar Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers (August 19, 2021; https://www.dbrsmorningstar.com/research/383238); and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (May 31, 2021; https://www.dbrsmorningstar.com/research/379424), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

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 info@dbrsmorningstar.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577