The ratings on Virgin Media Inc. (VMI) are constrained by the fierce competitive landscape in the U.K. in the company's main markets; a still highly leveraged--albeit improving--capital structure; and reliance on a competitor for some key TV content. The ratings benefit, however, from a two-way cable network passing one-half of the households in the U.K.; well-established business positions; and continuing positive free operating cash flow (FOCF) generation. VMI's first-quarter 2008 performance improved compared with the same period last year, as reflected by 6% growth in reported EBITDA to £324 million (32% margin), driven by a combination of reduced costs related to Virgin Media's rebranding and cost savings in the cable segment. The contribution of the cable division to total group
