The rating on ViaSat Inc. reflects the risks associated with its entry into a new business line with uncertain business prospects. The company has a sustainable position in the government services segment of defense network components and benefits from relatively moderate leverage, at about 3x pro forma for the acquisition of satellite-based consumer broadband provider WildBlue Holding Inc. However, it faces substantial capital requirements associated with its launch of satellite ViaSat 1 in early 2011. ViaSat's ability to reposition the WildBlue service with the launch of ViaSat 1 to a higher speed, more robust product will provide an important competitive differentiator over the longer term, given Standard&Poor's Ratings Services' concerns about the prospects for the consumer satellite-based broadband
