The ratings on Atlanta, Ga.-based Cox Enterprises (CEI) and its subsidiaries reflect the company's well-diversified portfolio of cable TV systems, broadcasting, and newspaper publishing businesses, and auto auctions, which have good operating margins, solid positions in their respective industries, good free cash flow generating potential, and significant asset value. The ratings also incorporate Standard & Poor's Ratings Services' expectations that the company will refrain from meaningful leveraged transactions until financial risk declines. Tempering factors include elevated leverage from the company's acquisition of minority interests in the cable subsidiary, cable's capital spending requirements, and a historically aggressive acquisition and growth orientation. Standard & Poor's views the credit profile of CEI and its subsidiaries on a consolidated basis, given the economic and
