Quebec-based regional cable operator Cogeco Communications Inc. ?s leverage remained elevated at approximately 3.8x for first quarter of 2025. While we expect fiscal 2025 EBITDA to remain stable, with leverage improving marginally to 3.6x this year; the company?s leverage improvement is dependent on reducing costs. As such, we affirmed our ?BB+? rating on Cogeco and our ?BB? rating on its U.S. subsidiary Cogeco Communications (USA) Inc. At the same time, we affirmed our 'BBB-' issue-level rating on Cogeco's senior secured debt and our 'BB+' issue-level rating on unsecured debt. The negative outlooks reflect that we could lower our rating over the next 12 months if we believe Cogeco's leverage will not approach 3.5x by fiscal 2025, either due to declining
