The ratings on Corus Entertainment Inc. reflect its well-diversified business mix, as indicated by its number-one Canadian radio market position; the strength of its broadcast assets, particularly children's specialty television; and the company's production and content strengths in animated children's programming following its acquisition of Nelvana Ltd. The ratings also reflect a favorable regulatory regime, particularly in the Canadian specialty television industry. These factors are offset by an acquisition-driven growth strategy that resulted in a relatively high debt level. Immediate concerns about Corus' debt level are mitigated by asset divestitures expected in 2002. The outlook takes into consideration Corus' stated debt-reduction initiatives and the resulting credit measures. Standard&Poor's expects Corus to pursue a future growth strategy and financial
