Morningstar DBRS Assigns Credit Rating of BBB (low) with Stable Trend to Rogers Communications Inc.’s Debt Issuances

DBRS Ltd. (Morningstar DBRS) assigned credit ratings of BBB (low) with Stable trends to Rogers Communications Inc.’s (Rogers or the Company; rated BBB (low) with a Stable trend by Morningstar DBRS) USD 1,250 million 5.00% Senior Notes due 2029 and USD 1,250 million 5.30% Senior Notes due 2034 (the Notes).

The credit ratings assigned to the Notes are based upon Morningstar DBRS’ credit rating on an already-outstanding series of the above-mentioned debt instrument.

The Notes are unsecured, unsubordinated obligations of Rogers and the Guarantor, respectively, and will rank pari-passu with Rogers’ and the Guarantor’s existing and future unsecured, unsubordinated debt. Payment of principal; premium, if any; and interest on each series of the Notes and all payment obligations of Rogers under the indenture will be fully and unconditionally guaranteed by Rogers Communications Canada Inc., one of Rogers’ direct, wholly owned subsidiaries.

Morningstar DBRS expects Rogers to use the total net proceeds repay a portion of the Company’s outstanding indebtedness, including a portion of its borrowings under a term loan facility that was used to partially fund the Shaw Communications Inc. acquisition that closed in April 2023. Pending any such uses, Rogers may invest the net proceeds in bank deposits and money market securities.

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

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (January 23, 2024) https://dbrs.morningstar.com/research/427030/morningstar-dbrs-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)

A) Weighting of BRA Factors
In the analysis of Rogers Communications Inc., the relative weighting of the BRA factors was approximately equal.

B) Weighting of FRA Factors
In the analysis of Rogers Communications Inc., the relative weighting of the FRA factors was approximately equal.

C) Weighting of the BRA and the FRA
In the analysis of Rogers Communications Inc., the BRA carries greater weight than the FRA.

On February 20, 2024, Morningstar DBRS updated section (A) under the BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA) disclosures to reflect that the BRA carries greater weight than the FRA.

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

Morningstar DBRS applied the following principal methodology:
-- Global Methodology for Rating Companies in the Communications Industry (July 20, 2023) - https://dbrs.morningstar.com/research/417420/global-methodology-for-rating-companies-in-the-communications-industry

The following methodologies and criteria have also been applied:
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023) - https://dbrs.morningstar.com/research/411694/dbrs-morningstar-global-criteria-guarantees-and-other-forms-of-support
-- DBRS Morningstar Global Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (October 19, 2023) - https://dbrs.morningstar.com/research/422134/dbrs-morningstar-global-criteria-preferred-share-and-hybrid-security-criteria-for-corporate-issuers

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

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

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

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

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit 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. Morningstar DBRS trends and credit ratings are under regular surveillance.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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