QVC's strong competitive position in TV-based retailing. Track record of solid operating performance. Good profit margin. Good discretionary cash flow. "Strong" liquidity. Moderate debt leverage. The rating outlook on Englewood, Colo.-based video and e-commerce company, Liberty Interactive Corp. is stable. We believe that the company's steady operating performance will continue, absent another recession. We view the probability of an upgrade or downgrade as low. We could lower our rating on Liberty Interactive over the next two years if the company pursues sizable acquisitions or debt-financed share repurchases that we believe will likely increase debt leverage above 4x on a sustained basis. An upgrade would require the company to articulate and demonstrate a commitment to a more conservative financial policy and
