The ratings on Virgin Media Inc. (VMI) are constrained by our view of: the intense 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, innovative, and advanced broadband Internet and content offerings and to react quickly to customer demand. On the operational
