Montreal-based cable services provider Cogeco Cable Inc. has entered into an agreement to acquire Vancouver-based data center services provider Peer 1 Networks Enterprises Inc. (not rated). The C$634 million purchase will raise Cogeco Cable's pro forma adjusted debt-to-EBITDA ratio to the high-3x area. As a result, we are placing our 'BB+' long-term corporate credit rating on Cogeco Cable on CreditWatch with negative implications. The CreditWatch placement reflects the company's higher debt leverage and our concerns about its ability to reduce debt leverage to our 3.5x target in the near term. On Dec. 21, 2012, Standard&Poor's Ratings Services placed its ratings on Montreal-based cable services provider Cogeco Cable Inc. and its subsidiaries, including its 'BB+' long-term corporate credit rating
