The ratings on Cogeco Cable Inc. are based on the consolidated risk profile of the company's 100%-owned Canadian and Portuguese cable subsidiaries. In Standard&Poor's Ratings Services' opinion, the ratings underpin the 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 its Portugal-based cable operator Cabovisao-Televisao por Cabo S.A. The ratings are also supported by the company's relatively conservative debt leverage and improving credit metrics. In our view, however, the ratings are tempered by an aggressive financial policy, given management's desire to pursue additional debt-financed acquisitions, potentially in new geographic markets; high capital expenditures; weak, albeit improving, cash flow protection measures; and moderate
