We are raising our long-term corporate credit rating on Montreal-based cable TV provider Cogeco Cable Inc. to 'BB+' from 'BB'. At the same time, we are raising the issue-level rating on Cogeco Cable's senior secured debt to 'BBB' from 'BBB-' and affirming our '1' recovery ratings on these obligations. The rating actions primarily reflect our view that the company can pursue its acquisitive growth strategy without increasing adjusted debt leverage to more than 3.5x for a prolonged period. The stable outlook is based on our expectations that the strength of the company's Canadian cable operations will offset potential weakness in its Portuguese cable operations and that absent larger acquisitions, the company's credit protection measures will remain relatively conservative for the
