Solid market position in core businesses Strong EBITDA margin Favorable broadcast regulatory environment limiting foreign ownership and competition Exposure to cyclical advertising environment Free cash flow reduced by sizable dividend payments Highly competitive operating environment, including pressures from alternative content and distribution channels The ratings on Toronto-based Corus Entertainment Inc. reflect what Standard&Poor's Ratings Services views as the company's fair business risk profile and significant financial risk profile. The business risk profile reflects the company's market position in specialty television and radio, positive advertising growth dynamics for the specialty television industry, and the favorable Canadian broadcasting regulatory regime, which limits competition. However, participation in the media industry is also challenging because of its cyclical nature (particularly for advertising
