DBRS Morningstar Finalizes Its Provisional Rating of BB, Stable, and Recovery Rating of RR4 on Corus Entertainment Inc.'s Senior Unsecured Notes

DBRS Limited (DBRS Morningstar) finalized its provisional rating of BB with a Stable trend and a recovery rating of RR4 on Corus Entertainment Inc.’s (the Company; rated BB with a Stable trend by DBRS Morningstar) Senior Unsecured Notes.

DBRS Morningstar expects the Company to apply the full amount of net proceeds from the Senior Unsecured Notes offering toward reducing the Company’s outstanding senior secured term debt balance (the Bank Facility).

The Senior Unsecured Notes will rank equal in right of payment with any existing and future senior unsecured indebtedness, senior in right of payment to any future subordinated indebtedness, and effectively junior to any existing and future secured indebtedness of the Company, including indebtedness under the current Bank Facility, to the extent of the value of the assets securing such indebtedness.

The obligations of the Company under the Indenture and the Senior Unsecured Notes will be fully and unconditionally guaranteed on a senior unsecured basis.

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 24, 2020; https://www.dbrsmorningstar.com/research/366063), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 14, 2021; https://www.dbrsmorningstar.com/research/372344), 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).

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

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.

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