The ratings on Atlanta, Ga.-based Cox Enterprises (CEI) and its subsidiaries reflect the company's diversified portfolio of cable TV systems, media businesses, and auto auctions, which have solid market positions, good operating margins, healthy free cash flow generating characteristics, and significant asset value. The ratings also incorporate Standard & Poor's Ratings Services' expectations that CEI will refrain from meaningful leveraged transactions until financial risk moderates. Tempering factors include elevated leverage from the company's December 2004 $8.5 billion acquisition of minority interests in the cable subsidiary, cable's capital spending requirements, and a historically aggressive acquisition and growth orientation. We view the credit profile of CEI and its subsidiaries on a consolidated basis, given the economic and strategic importance of the units
