The ratings on U.K.-based telecommunications provider NTL Inc. are constrained by its challenging, competitive operating environment resulting in weak revenue growth; significant gross leverage; and a demanding debt amortization profile. The group benefits, however, from high bandwidth, a two-way network, an established residential customer base, and ongoing operational improvements. NTL acquired Virgin Mobile Holdings (U.K.) Ltd. on July 4, 2006, resulting in gross debt of £6.3 billion and high pro forma lease-adjusted gross debt to annualized last-quarter NTL EBITDA of about 5.5x at June 30, 2006, pro forma for the combined group (including adjusted full-year EBITDA of £69 million for Virgin), or 5.1x excluding allocated integration expenses. NTL now has access to one-half of the U.K.'s homes and has about
