The rating on ViaSat Inc. reflects the risks associated with its entry into a new business line with uncertain business prospects and potential for more intense competition than its core defense-related business. The company has a sustainable position in the government services segment of defense network components and benefits from relatively moderate leverage, at about 3x. 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 market, including
