On difference Riccati equation and continued fractions

We study a difference Riccati equation $\Phi(x) + \rho(x)/\Phi(x-\omega) = v(x)$ with $1-$periodic continuos coefficients. Using continued fraction theory we investigate a problem of existence of continuos solutions for this equation. It is shown that convergence of a continued fraction representing a solution of the Riccati equation can be expressed in terms of hyperbolicity of a cocycle naturally associated to this continued fraction. We apply the critical set method to establish the uniform hyperbolicity of the cocycle and to obtain sufficient conditions for the convergence of a continued fraction giving a representation for a solution of the Riccati equation.