The ratings on The Netherlands-based Ziggo Bond Co. B.V., the indirect full owner of the largest Dutch TV cable operator, are constrained by Ziggo's financial risk profile, which Standard&Poor's Ratings Services assesses as highly leveraged. Additional weaknesses are the head-to-head competition Ziggo faces against domestic incumbent KPN, and the push from competitors on Internet protocol TV (IPTV), or the gradual rollout of very high bit-rate digital subscriber line (VDSL) or fiber, which could narrow Ziggo's advantage over time. We see as rating strengths Ziggo's solid margins and free cash flow generation, its strong cable and overall TV market position in an attractive market, state-of-the-art hybrid fiber-and-coax (HFC) and fully upgraded DOCSIS3.0 network, and consumers' ongoing shift to digital
