The ratings on Minneapolis-based incumbent cable operator Midcontinent Communications (Midcontinent) reflect its small scale and low system densities, mature revenue growth prospects for basic video services, and an "aggressive" financial risk profile (as defined in our criteria). 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, HSD, and telephony services; its programming and equipment purchasing agreement with 50%-owner Comcast Corp.; and solid profitability measures and net free cash flow generation. Midcontinent was formed in 2000 when Midcontinent Media and predecessor companies of Comcast contributed cable systems in North Dakota,
