The ratings on Netherlands-based Ziggo Bond Co. B.V. (Ziggo), the indirect full owner of the largest Dutch TV cable operator, continue to be 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 that Ziggo faces against domestic incumbent Koninklijke KPN N.V. (KPN; BBB+/Stable/A-2), 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. In our view, Ziggo's rating strengths include solid margins and free cash flow (FCF) generation, its strong cable and overall TV market position in an attractive market, its state-of-the-art hybrid fiber-and-coax (HFC) and
