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ROGERS CABLESYSTEMS CDN$300 MILLION SENIOR SECURED NOTES RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 12 /PRNewswire/ -- Rogers Cablesystems Ltd.'s proposed issue of CDN$300 million senior secured second priority debentures due 2014 are rated "BBB-" by Fitch. The company's US$450 million in outstanding senior secured second priority notes due 2002 and 2012 rated "BBB-" are affirmed. The credit trend is stable.
 The investment grade rating reflects the company's stable cash flow characteristics, strong demand for cable service in Canada, and the financial flexibility provided by no material scheduled debt maturities over the next several years. The rating also acknowledges the company's comparatively high leverage and modest interest coverage.
 Pro forma for this transaction, debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) is about 5.3 times (x), and EBITDA coverage of interest is approximately 1.7x. Leverage and coverage are expected to remain at current levels over the next few years as free cash flow will likely be used for capital expenditures rather than debt reduction.
 Net proceeds will be used to repay all intercompany subordinated debt of approximately CDN$70 million. The balance will be used for general corporate purposes, including capital expenditures or distributions to the extent permitted under the indenture.
 The indenture restricts the ability of the company to incur additional senior debt unless certain covenants are met. The indenture also contains restrictions on the payment of dividends, purchase, redemption, or retirement of capital stock or subordinated debt, making of investments, incur liens, payment of management fees, mergers, consolidations, sales of assets, and certain transactions with affiliates.
 Rogers Cablesystems Ltd. is Canada's largest cable television company, serving 1.9 million basic subscribers, representing approximately 24% of all cable television subscribers in Canada. Approximately 95% of all Canadian households have access to cable television. Of that amount, approximately 79% subscribe to cable service. Within Rogers's franchise area, subscriber penetration consistently exceeds 84%, with a very high degree of stability. The company is a wholly owned subsidiary of Rogers Communications, Inc., a publicly traded Canadian communications company.
 -0- 1/12/94
 /CONTACT: Stuart M. Rossmiller, 212-908-0639 or Keith B. Foley 212-908-0572/
 (RCI)


CO: Rogers Cablesystems Ltd. ST: Ontario IN: ENT SU: RTG

SP -- NY070 -- 1477 01/12/94 15:07 EST
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Publication:PR Newswire
Date:Jan 12, 1994
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