MANAGEMENT’S DISCUSSION  AN D ANALYSIS Covenants FINANCIAL CONDITION Capital Resources Credit Ratings Bank Credit and Letter of Credit Facilities Liquidity We have $2.5 billion of bank credit and letter of credit facilities. Each of these facilities is unsecured and guaranteed by Rogers Communications Partnership and ranks equally with all of our senior notes and debentures. The terms of our bank credit facility are committed by the participating financial institutions until it expires in July 2017. As at December 31, 2013, there were no advances outstanding under our $2.0 billion bank credit facility and there were letters of credit totalling $0.5 billion outstanding under our letter of credit facilities. We had approximately $4.5 billion of available liquidity at December 31, 2013, as compared to $3.1 billion available at December 31, 2012: We believe that we can satisfy foreseeable additional funding requirements by issuing additional debt financing, which, depending on market conditions, could include restructuring our existing bank credit and letter of credit facilities, issuing public or private debt, amending the terms of our accounts receivable securitization program or issuing equity. We may also refinance a portion of existing debt depending on market conditions and other factors. There is no assurance, however, that this will or can be done. We anticipate generating a net cash surplus in 2014 from our cash from operations. We expect that we will have sufficient capital resources to satisfy our cash funding requirements in 2014, including the funding of dividends on our common shares, repayment of maturing long-term debt and other financing activities, investing activities, and other requirements, taking into account our opening cash balance, cash from operations, the amount available under our $2.0 billion bank credit facility, and our accounts securitization program and from the issuance of short-term and, or long-term debt from time to time. At December 31, 2013, there were no significant restrictions on the flow of funds between Rogers and its subsidiary companies. This information is forward-looking and should be read in conjunction with “About forward-looking information” and “Risks and Uncertainties Affecting Our Business” and other disclosure about various economic, competitive and regulatory assumptions, factors and risks that could cause our actual future financial and operating results to differ from those currently expected. Our capital resources consist primarily of cash flow from operations, cash and cash equivalents, available lines of credit, funds available under our accounts receivable securitization program and issuances of long-term debt. We are currently in compliance with all covenants under our debt instruments. At December 31, 2013, there were no financial leverage covenants in effect other than those under our bank credit and letter of credit facilities (see Terms and conditions under Note 18 to the 2013 audited consolidated financial statements). Credit ratings provide an independent measure of credit quality of an issue of securities, and can affect our ability to obtain short-term and long-term financing and the terms of the financing. If rating agencies lower the credit ratings on our debt, particularly a downgrade below investment grade, it could adversely affect our cost of financing and access to liquidity and capital. We have engaged each of Fitch Ratings (Fitch), Moody’s Investors Service (Moody’s) and Standard & Poor’s Ratings Services (Standard & Poor’s) to rate our public debt issues. In May 2013, each of Fitch and Standard & Poor’s upgraded RCI’s senior unsecured debt to BBB+ (from BBB) with a stable outlook. Moody’s comparably equivalent rating of Baa1 with a stable outlook has not changed from last year. The table below shows the credit ratings on our borrowings received from the rating agencies as of December 31, 2013: Ratings for debt instruments across the universe of composite rates range from AAA (Standard & Poor’s and Fitch) or Aaa (Moody’s) representing the highest quality of securities rated, to D (Standard & Poor’s), C (Moody’s) and Substantial Risk (Fitch) for the lowest quality of securities rated. Credit ratings are not recommendations for investors to purchase, hold or sell the rated securities, nor are they a comment on market price or investor suitability. There is no assurance that a rating will remain in effect for a given period of time, or that a rating will not be revised or withdrawn entirely by a rating agency if it believes circumstances warrant it. The ratings on our senior debt provided by Standard & Poor’s, Fitch and Moody’s are investment grade ratings. RATIO OF ADJUSTED OPERATING PROFIT TO INTEREST 2013 2012 2011 6.8x 6.8x 7.1x 2013 Corporate credit issuer default rating S enior unsecured debt Standard and Poor’s BBB+ with a stable outlook BBB+ with a stable outlook Fitch BBB+ with a stable outlook BBB+ with a stable outlook Moody’s Baa1, stable outlook Baa1, stable outlook GLYPH<129> $2.3 billion in cash and cash equivalents (2012 – $0.2 billion) GLYPH<129> $2.0 billion available under our bank credit facility (2012 – $2.0 billion) GLYPH<129> $0.2 billion available under the $0.9 billion accounts receivable securitization program (2012 – $0.9 billion). 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 61