The ratings on Cogeco Cable Inc. reflect 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 satisfactory business risk profile of Cogeco's Canadian cable operations, which comprise about 85% of total revenue, partially offset by the vulnerable business risk profile of the company's Portugal-based cable operator, Cabovisao-Televisao por Cabo S.A. The ratings are also supported by Cogeco's relatively strong adjusted debt-to-EBITDA ratio and corresponding credit metrics. Tempering factors, in our view, are an aggressive financial policy, given management's stated desire to pursue additional debt-financed acquisitions in the future, potentially in new geographic markets where there are few synergies available; and its high capital expenditures. Cogeco
