The ratings on Montreal, Que.-based cable operator Cogeco Cable Inc. are based on the consolidated risk profile of its Canadian and Portuguese subsidiaries. The ratings underpin an investment-grade business risk profile of the company's Canadian operations, which generate 75% of consolidated revenues, partially offset by the weak business profile of Cabovisao-Televisao por Cabo S.A. (Cabovisao), the recently acquired Portuguese cable operator. The ratings also reflect an aggressive financial risk profile, as highlighted by weak debt leverage and corresponding credit metrics stemming from the recent debt-financed acquisition of Cabovisao. Cogeco's Canadian operations continue to perform well despite steady competition from incumbent telecom operator Bell Canada (A-/Watch Neg/A-2) and direct-to-home (DTH) satellite providers Bell ExpressVu and Star Choice. Cogeco's Canadian operations have
