The ratings on Cogeco Cable Inc. reflect the company's below average, but improving financial risk profile, given the company's somewhat aggressive leverage, and its 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. The ratings also factor in the recently announced roll-out of telephony services using voice over Internet protocol (VOIP) technology. Standard&Poor's Ratings Services expects Cogeco Cable to maintain a relatively stable financial profile in the near term. The roll-out of telephony is expected to have only a marginal negative effect on cash flows in the near term and should be positive in the medium term. Overall, the company will maintain capacity to reduce
