The rating on Carlsbad, Calif.-based ViaSat Inc. reflects the risks associated with the company's entry into a newer business line than its more traditional government systems and commercial networks segments, with uncertain business prospects and potential for more intense competition than these core businesses. The company has a sustainable position in the government services segment of defense network components and benefits from relatively moderate leverage, at about 2.5x. However, it faces substantial capital requirements associated with its launch of satellite ViaSat 1 in the second half of 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
