The ratings on Quincy, Mass.-based Atlantic Broadband Finance LLC (Atlantic) reflect high financial risk from largely debt-financed cable TV system acquisitions and system upgrade capital expenditures, subscriber losses from direct-to-home (DTH) satellite TV competition, potential emergence of competition from local phone companies entering the video business, cost disadvantages from small company size, and minimal discretionary cash flow. 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, digital video services, and cable telephony. Atlantic operates cable systems serving roughly 215,000 equivalent basic subscribers. About two-thirds of the customers are in mature, smaller markets in western Pennsylvania, while the rest are in faster-growing Miami Beach and Mid-Atlantic markets, accounting
