The ratings on Corus Entertainment Inc. (Corus) reflect the company's aggressive financial profile, weak performance in the content division, and competitive operating environment. The ratings also reflect challenging industry fundamentals, including the cyclical nature of the media industry, particularly for advertising and content. These factors are partially offset by the strong market position of the company's core specialty television and radio businesses and by the revenue diversity provided by these assets. Positive advertising growth dynamics for the specialty television industry and the favorable Canadian broadcasting regulatory regime, which limits competition, are also reflected in the ratings. Corus' business comprises three operating divisions: Television (53% of revenues for the six months ended Feb. 28, 2005): The company owns or has interests
