The ratings on U.K.-based telecommunications provider NTL Inc. are constrained by its challenging, competitive operating environment that results 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. Following its combination with Telewest Global Inc., NTL Inc. acquired Virgin Mobile Holdings (UK) Ltd. on July 4, 2006, resulting in gross debt of £6.2 billion and high lease-adjusted gross debt to annualized last-quarter NTL EBITDA of about 5.6x at Sept. 30, 2006, or 4.9x excluding allocated integration expenses and other charges. In addition, NTL has entered into preliminary discussions with ITV PLC (BBB-/Stable/A-3), which could lead to a possible
