The ratings on Virgin Media Inc. (VMI) are constrained by our view of: the fierce competitive landscape in the U.K., which weighs on VMI's 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 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 offerings and advanced broadband Internet and content, and to react quickly to customer demand. On the operational front,
