The ratings on Montreal-based Cogeco Cable Inc. are based on the consolidated risk profile of its 100%-owned Canadian and Portuguese cable subsidiaries. The ratings underpin a solid business risk profile of the company's Canadian operations, which generate about three-fourths of consolidated revenues, partially offset by the weak business risk profile of Portugal-based cable TV operator Cabovisao-Televisao por Cabo S.A., which was acquired on Aug. 1, 2006. The ratings are tempered by a financial risk profile that's characterized by an aggressive financial policy given management's desire to pursue additional debt-financed acquisitions, potentially in new geographic markets; weak, albeit improving, credit protection measures; a limited history of meaningful free operating cash flow generation; and modest liquidity. In terms of number of basic
