The ratings on Montreal-based 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 more than 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 (about 2x for the 12 months ended Aug. 31, 2011) and corresponding cash flow protection measures. 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
