On Aug. 20, 2003, Standard&Poor's Ratings Services revised its outlook on diversified Canadian media company, Corus Entertainment Inc. to negative from stable. At the same time the ratings on Corus, including the 'BB' long-term corporate credit rating, were affirmed. Toronto, Ont.-based Corus is the largest Canadian radio operator, which owns or has interest in a number of specialty television networks, and through Nelvana Ltd. a producer of animated children's programming. The revised outlook reflects a slower-than-expected expansion of Corus' cash flow base, due to not only cyclical economic factors, but also a structural decline in pricing for the company's programming, limiting the long-term financial prospects of Nelvana. Although Corus generates positive free cash flows, and operating margins have
