The ratings on Cogeco Cable Inc. reflect the company's relatively strong business position as Canada's fourth-largest cable company, as well as its fairly moderate overall financial policy. These factors are tempered by the challenges presented in the form of growing competition in the Canadian broadcast distribution industry, as reflected by the company's basic subscriber losses and continued pressure on operating margins. Cogeco Cable's systems are well clustered in the provinces of Ontario and Quebec. Through strategic acquisitions and system upgrades, the company has built a largely interconnected system in the Windsor-Rimouski corridor, with 71% of its customer base in Ontario and the remainder in Quebec. Cogeco Cable served 836,368 basic cable customers at Aug. 31, 2002, representing 61% penetration of
