This report does not constitute a rating action. LONDON (S&P Global Ratings)--VMED O2 UK Ltd.'s third-quarter results show its operating performance is under significant pressure from intense competition in the U.K.'s telecoms market, particularly from altnets in the broadband segment. The company also faces continued aggressive competition in the value end of the mobile market from second brands and mobile virtual network operators. We therefore expect VMED O2 UK's (VMED O2's) organic EBITDA to decline by 3%-5% for full-year 2026, fueled by persistent pricing pressures across the mobile, fixed, and business-to-business segments, alongside elevated churn in the consumer sector. Consequently, we expect VMED O2's S&P Global Ratings-adjusted debt to EBITDA to increase toward 6.0x by the end of 2026, which
