The ratings on Cogeco Cable reflect the company's below-average, but improving financial risk profile, given the company's somewhat aggressive leverage, and the company's average business position as Canada's fourth-largest cable company. Cogeco Cable's controlling parent, Cogeco Inc. (Cogeco), has no material effect on the ratings. Standard&Poor's Ratings Services expects continued marginal improvements in the company's financial risk profile in 2005, as the company is currently generating positive free cash flow and is expected to apply most of that to debt reduction. Lease-adjusted total debt was C$845.1 million as at Nov. 30, 2004; a reduction of about C$50.6 million in the past 12 months as free operating cash flow has been used to repay debt. Although below average, credit
