The ratings on Liberty Media Corp. reflect its equity portfolio concentrated in the media and telecommunications sector, and its majority-owned and wholly owned operations and their growth prospects, partly offset by Standard&Poor's Ratings Services' view that management's financial strategy has become more fluid, shareholder-favoring, and likely, at some point, to exhibit an increase in total leverage (particularly at subsidiaries). Denver, Colo.-based Liberty, with gross debt of $10.3 billion as of June 30, 2005, is an operator and investor in the media/entertainment sector. The company's business operations include QVC Inc. (the largest player in home shopping) and Starz Entertainment Group LLC (a major movie programming service). Liberty's equity portfolio consists of important stakes in News Corp. and IAC/InterActiveCorp. and
