DBRS Comments on Government of Canada’s Plans for Telecom and Media Industries
DBRS notes that in yesterday’s Speech from the Throne, the Governor General indicated that the Government of Canada has plans that could ultimately affect the telecom and media industries in Canada.
The plans are threefold and include: (1) “launching a digital economy strategy to drive the adoption of new technology across the country”; (2) looking to “strengthen laws governing intellectual property and copyright”; and (3) a strategy to “open Canada’s doors further to venture capital and to foreign investment in key sectors, including the satellite and telecommunications industries, giving Canadian firms access to the funds and expertise they need.”
Although DBRS’s credit ratings for the specific issuers in the telecom and media industries are unaffected by the announcements, DBRS will assess the impact of these initiatives as additional clarity emerges. It is likely that the initiative to relax foreign ownership rules would have the largest effect on the telecom industry.
On Wednesday, March 10, DBRS will publish a newsletter that will provide additional analysis of potential changes in the Canadian telecom and media industries. If you are interested in receiving this newsletter, contact us at info@dbrs.com.
Notes:
The applicable methodologies are Rating Telecommunications and Rating Media and Entertainment, which can be found on our website under Methodologies.
This is a Corporate (Telecom/Media/Technology) rating.