S&P rates Shaw Communications notes BB+

Standard & Poor's said it assigned a BB+ rating to Shaw Communications Inc.'s proposed C$300 million senior unsecured notes due 2016, the final amount of which could be increased modestly, and affirmed the company's BB+ corporate credit and senior unsecured debt ratings. The outlook is stable.

Proceeds will be used to refinance existing bank debt and for working capital purposes.

The ratings on Shaw reflect the risk profile of its consolidated subsidiaries, which comprise its cable TV subsidiaries and its satellite subsidiary, Canadian Satellite Communications Inc. While Shaw has an investment-grade business risk profile supported by the strength of its core cable TV and Internet operations, the ratings are constrained by an aggressive financial risk profile characterized by high leverage and an aggressive financial policy, the agency said.

Debt to adjusted EBITDA is 3.9x, and S&P said it expects Shaw to end fiscal 2006 with a debt to adjusted EBITDA ratio of 3.8x.

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