DBRS confirms Manitoba Telecom

DBRS said it confirmed Manitoba Telecom Services Inc.'s medium-term notes at BBB and its commercial paper program at R-2 (high). The trend is stable.

The agency said Manitoba Telecom's ratings continue to reflect its higher business risk relative to its peers. The incumbent business in Manitoba is healthy but faces competition from cable operators and other wireless carriers, DBRS said, and the Allstream national enterprise business is highly competitive and is in transition from legacy to IP-based services for national enterprise customers.

DBRS noted that Manitoba Telecom is well positioned from a network and technology perspective.

While factors such as competition and technology substitution persist, and new services continue to require upfront costs, the agency believes that Manitoba Telecom should remain competitively well positioned in terms of its product portfolio.

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