The ratings on Toronto-based Corus Entertainment Inc. reflect what Standard&Poor's Ratings Services views as the company's fair business risk profile and significant financial risk profile. The business risk profile reflects the company's market position in specialty television and radio, as well as the favorable Canadian broadcasting regulatory regime, which limits competition. However, participation in the media industry is challenging because of its cyclical nature (particularly for advertising and content) and competitive pressures from alternative content and distribution channels, which could result in lower profitability in the future. Corus' financial risk profile is supported by its improving operating performance and credit protection measures, partially offset by the company's sizable annual dividend, which reduces free cash flow (FCF). Corus' business
