Ratings on privately held Cox Enterprises Inc. (Cox) and its subsidiaries reflect the solid cash flow generated by the company's diversified portfolio of cable TV systems, auto auction and advertising businesses, and media properties. Intermediate leverage and our expectation of a continued prudent financial policy bolster Cox's rating. We view Cox's core cable operations as having a strong business risk profile. It is the cable unit which provides around 60% of consolidated revenues, underpinning Cox's investment grade rating. Nevertheless, Cox Communications Inc. (the cable subsidiary) is essentially mature and, along with its cable peers, faces increasing challenges from formidable satellite and telephone competitors. Accordingly, the ratings incorporate our expectation that Cox will direct a material portion of what we expect
