On Oct. 3, 2008, Standard&Poor's Ratings Services assigned its debt issue and recovery ratings to Montreal-based Cogeco Cable Inc.'s C$257 million equivalent senior secured notes issuance. The private placement comprises US$190 million 7.0% series A senior secured notes due Oct. 1, 2015, and C$55 million 7.6% series B senior secured notes due Oct. 1, 2018. The notes are senior secured obligations of Cogeco Cable, ranking equally with all the company's existing and future senior secured debt and certain of its subsidiaries. We rate the notes at 'BBB-' (two notches higher than the corporate credit rating on Cogeco Cable), with a recovery rating of '1', indicating lenders can expect very high (90%-100%) recovery in the event of payment default.
