TEXT-Fitch affirms Thomson Reuters IDR at 'A-', outlook is stable

June 20 - Fitch Ratings has affirmed Thomson Reuters Corp.'s
(TRI) long-term IDR at 'A-'. The Rating Outlook is Stable.

Rating Rationale:

--Fitch's ratings for TRI reflect the company's cash flow generating ability,
its sound balance sheet and its consistent and conservative financial policies.
Fitch expects that TRI will continue to target 2.0 times (x) net unadjusted
leverage.

--Fitch recognizes that there are meaningful barriers to entry in TRI's core
businesses. There are also a limited number of well-capitalized competitors that
compete predominantly on product differentiation, quality and delivery.
--The ratings reflect the planned divesture of the healthcare business. Fitch
believes management will continue to be disciplined in its approach to
divestures and acquisitions. Fitch expects proceeds from divestures and cash
generated by operations to be used for investments into its core businesses,
acquisitions and for return of capital to shareholders (dividends and/or share
buybacks).

--Rating concerns include cyclicality of the Financial and Risk (F&R) segment.
However, TRI's overall revenue/product diversification creates a cushion to
absorb some pressures within a particular segment.

--TRI has guided to low single digit growth in total ongoing revenues and
adjusted EBITDA margins expanding 60 to 160 basis points. Fitch believes this is
attainable. That said, the ratings have tolerance for revenue and EBITDA margin
expansion to be less than TRI's expectations.

--Also, as with other highly rated media companies, the potential threat of
financial policy revisions is an inherent concern.

Key Rating Drivers:

--Rating upside is limited. However, an explicit commitment to and sustained
track record of more conservative balance sheet metrics could merit upgrade
consideration.

--Fitch believes that TRI is committed to its balance sheet parameters. However,
a significant acquisition or heavy repurchases that left TRI operating
materially outside its targeted leverage comfort range for several sequential
periods, without a publicly stated plan to de-lever, could result in a negative
rating action.

During the recent downturn, the Markets business generally exhibited less
operating leverage (on an EBITDA basis) than Fitch would have anticipated for a
predominantly fixed-cost business. Cost reductions in connection with the
integration of Reuters provided a significant offset to decline in revenues.
This in turn provided support to EBITDA margins. The ratings reflect Fitch's
expectations that EBITDA margins will be more susceptible in future downturns.
Fitch notes that the subscription nature of the business provides a lag. This
gives management visibility on the need for fixed-cost actions to preserve
margins.

Free Cash Flow (FCF)

Based on Fitch's calculations, last twelve months (LTM) FCF (after dividends) as
of March 31, 2012, was approximately $638 million. TRI's overall pension
position was 88% funded. Fitch does not expect any significant cash drains
related to pension plan funding.

Liquidity

Cash and cash equivalents totaled $467 million as of March 31, 2012. Liquidity
is also supported by TRI's $2 billion commercial paper program, with $285
million in CP issued as of March 31, 2012. The commercial paper program is
supported by its undrawn $2 billion revolving credit facility that expires
August 2016. TRI has ample cushion inside of the facility's 4.5x net debt to
rolling last 12 months (LTM) adjusted EBITDA leverage covenant.

TRI has the following near-term maturity schedule:
--$1 billion in notes maturing in 2013;
--$1.4 billion in notes maturing in 2014; and
--Approximately $600 million coming due in 2015 and 2016.

Given its liquidity position, access to capital market and FCF generation, Fitch
believes TRI has the flexibility to address upcoming maturities, make
acquisitions and/or share repurchase activity.

Leverage

As of March 31, 2011, debt totaled $7.5 billion, Fitch calculated unadjusted
gross leverage was approximately 1.9 times (x). Unadjusted net leverage was
1.8x. Pro forma for expected divestures, Fitch expects unadjusted gross leverage
of approximately 2.25x at the end of 2012, and net leverage under TRI's targets.

Fitch has affirmed the following ratings:

TRI
--IDR at 'A-';
--Bank credit facility at 'A-';
--Senior unsecured notes at 'A-';
--Short-term IDR at 'F2';
--Commercial paper at 'F2'.

The Rating Outlook is Stable.

Additional information is available at www.fitchratings.com. The ratings above
were unsolicited and have been provided by Fitch as a service to investors.

Applicable Criteria and Related Research:
--'Corporate Rating Methodology' (Aug. 12, 2011).

Applicable Criteria and Related Research:
Corporate Rating Methodology