The ratings on Quincy, Mass.-based Atlantic Broadband Finance LLC (Atlantic) reflect high financial risk from largely debt-financed cable TV system acquisitions, minimal discretionary cash flow because of 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 its small company size. Tempering factors include the company's position as the dominant provider of pay-TV services in its markets and growth potential from high-speed data and digital video services. Atlantic operates cable systems serving roughly 215,000 equivalent basic subscribers purchased from Charter Communications Inc. in March 2004. About two-thirds of the customers are in mature, smaller markets in western Pennsylvania, while the rest
