The ratings on Minneapolis-based incumbent cable operator Midcontinent Communications reflect a "satisfactory" business risk profile and a "highly leveraged" financial risk profile, according to Standard&Poor's Ratings Services' criteria. Key business risk factors include the company's small scale and low system densities and mature revenue growth prospects for basic video services. They also reflect competitive pressures from direct-to-home (DTH) satellite providers, incumbent telephone company CenturyLink Inc., and cable overbuilders. Tempering factors include the company's position as the dominant provider of pay-TV services in its markets; revenue growth opportunities from advanced video, high-speed data (HSD), and telephony services; its programming and equipment purchasing agreement with 50% owner Comcast Corp.; and solid profitability measures. While credit measures are somewhat better than
