DBRS Releases Report on Manitoba Tel

DBRS has today released a report on Manitoba Telecom Services Inc. (Manitoba Tel or the Company) that provides further detail on the recent confirmation of the Company’s ratings at BBB and R-2 (high) with a Stable trend.

The ratings confirmation is underpinned by the Company’s steady business risk profile, which includes a healthy incumbent business in Manitoba (although this segment is increasingly subject to competition) and a highly competitive national enterprise services division under the Allstream brand. Manitoba Tel’s business risk profile remains supported by a healthy financial risk profile. With modest future improvements in EBITDA and cash flow from operations, DBRS expects the Company’s credit metrics to remain commensurate with a BBB rating, as capex requirements wind down after the completion of major expansion and network upgrade projects.

Today’s report and the February 24, 2011, press release are available at www.dbrs.com.