Corus Entertainment Inc. has announced an agreement to acquire Shaw Media for C$2.65 billion. We are placing all of our ratings on Corus on CreditWatch with negative implications. The transaction will increase Corus' pro forma consolidated adjusted debt leverage above our downside threshold of 4x. We are likely to lower the long-term corporate credit rating on Corus by one notch if the transaction closes as proposed, with leverage increasing above 4x, which would be high for the 'BB+' rating and above our downside threshold. On Jan. 13, 2016, Standard&Poor's Ratings Services placed its 'BB+' long-term corporate credit rating and 'BB+' senior unsecured debt ratings on Corus Entertainment Inc. on CreditWatch with negative implications. This rating action follows the
