The ratings on Cox Enterprises Inc. (CEI) and its subsidiaries are supported by the company's well-diversified portfolio of media businesses, which includes attractive positions in cable TV, radio, and TV broadcasting, newspaper publishing, and automobile auctions. These units have good operating margins, solid positions in their respective industries, good free cash flow generating potential, and significant asset value. The cable TV and auto auction businesses help balance the advertising-dependent newspaper and broadcasting operations, which are more susceptible to economic cycles. These positive attributes are tempered by declining, but still meaningful, capital spending levels at the cable unit, and a historically aggressive acquisition and growth orientation. Standard & Poor's Ratings Services views the credit profile of CEI and its subsidiaries on
