The ratings on Atlantic Broadband Finance LLC (Atlantic) reflect high financial risk from largely debt-financed cable TV system acquisitions, minimal discretionary cash flow despite moderate additional capital spending needed to complete system upgrades, the challenges of stabilizing negative subscriber trends in light of heavy competition from direct-to-home (DTH) satellite TV operators, and cost disadvantages from small company size. Tempering factors include the company's position as the dominant provider of pay-TV services in its markets and potential growth from high-speed data and enhanced video services. Atlantic operates cable systems serving roughly 225,000 subscribers in Western Pennsylvania, Miami Beach, and the Maryland/Delaware peninsula, which the company purchased from Charter Communications Inc. for $732.6 million cash in March 2004. About two-thirds of Atlantic's
