The ratings on Cogeco Cable Inc. reflect the company's somewhat weak financial risk profile, given the company's relatively high leverage. The company's average business position, as Canada's fourth-largest cable company, remains relatively stable but has come under pressure in the past several years due to competition from Canadian direct-to-home (DTH) satellite TV providers and remains a long-term risk to the company. Standard&Poor's Ratings Services expects the company's financial policy to remain moderate. Lease-adjusted total debt levels are C$943.7 million as of Aug. 31, 2003, a reduction of about C$30 million from 2002, reflecting marginally positive free cash flow generation. Credit measures are in line with the rating category, with lease-adjusted EBITDA interest coverage of 2.8x and total debt
