The ratings on Virgin Media Inc. (VMI) are constrained by our view of: the fierce competitive landscape in the U.K., which weighs on the prospects for revenue growth; a highly leveraged--albeit improving--capital structure; and the group's reliance on a competitor for some key TV content. The ratings benefit, however, from VMI's well-established business position as the second-largest pay-TV operator in the U.K. and as a leading provider of "quadruple-play" services (TV, broadband Internet, fixed-line telephony, and mobile telephony). The group's cable network passes approximately one-half of all U.K. homes and its strong network capabilities and scalable infrastructure enable it to provide fast broadband Internet offerings and to react quickly to customer demand. VMI's subscription-driven business has been resilient to the
