The ratings on Montreal, Que.-based Cogeco Cable Inc. reflect what Standard&Poor's Ratings Services views as the company's "satisfactory" business risk profile reflecting the favorable industry risk characteristics of the subscription-based cable services industry in North America; Cogeco's position as the fourth-largest cable TV provider in Canada with 2.7 million revenue-generating units (RGUs) at Feb. 29, 2012; the company's solid subscriber share of pay TV and residential high-speed Internet (HSI) services within its cable footprint; and our expectation that the company can maintain strong profitability over the near term. Tempering factors, in our view, include rising competitive risks; our expectation of video subscriber losses in the medium term owing to the more ubiquitous triple- and quadruple-play offerings from well-capitalized
