Well-established business position as the second-largest pay-TV operator in the U.K. with strong content. Innovative, fast, and advanced broadband offering through an extensive and modern network. Steady growth in bundled products, including quadruple-play services. Intense competition from Internet, telephony, and TV providers in the U.K. Reliance on a competitor for some key TV content. Following the acquisition by Liberty Global, the revised capital structure has resulted in S&P-adjusted leverage of just under 5.0x. Ongoing sizable network investments and aggressive shareholder returns, which limit the company's ability to reduce debt. Solid free operating cash flow (FOCF) generation prospects despite continued high capital expenditure requirements. No large debt amortization until 2018, reflecting proactive liquidity management. The stable outlook on Virgin Media Inc.
