While U.S. cable operator Cox's core cable TV business is mature and facing increasing competition, the company generates material discretionary free cash flow. We are revising our outlook on Cox to positive from stable. We are also affirming our ratings on Cox and related entities, including the 'BBB-' corporate credit rating. The positive outlook acknowledges the potential for the company to use discretionary cash flow to reduce debt and moderate and maintain leverage below the 3x level. On June 22, 2010, Standard&Poor's Ratings Services affirmed its ratings on Cox Enterprises Inc. (Cox) and related entities. At the same time, we revised the rating outlook on Cox and its related entities, with the exception of Autotrader.com (BB+/Stable/--) to positive
