Solid margins and free cash flow generation. Strong cable and overall TV market position in the attractive Dutch market. State-of-the-art hybrid fiber-and-coax, fully DOCSIS 3.0 upgraded network. Ongoing shift to digital TV and demand for bundles, which provide growth prospects. Highly leveraged LBO-type financial risk profile. Head-to-head competition with large incumbent KPN. Competitors' push on IPTV and gradual VDSL or fiber roll-out, which could narrow Ziggo's advantage over time. 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
