Fitch: No change for Virgin Media

Fitch Ratings said there is no immediate impact on Virgin Media Inc.'s ratings or outlook following news that British Telecommunications plc (rated BBB+ with stable view) plans to build out a £1.5 billion fiber-optic network reaching 10 million homes over the next five years. Virgin Media has a long-term issuer default rating of BB- with stable outlook and short-term issuer default rating of B.

British Telecommunication's fiber-optic network will increase competitive pressure on Virgin Media, currently the only operator offering those services, the agency said.

Virgin Media will need to capitalize on the competitive advantage that its own hybrid fiber optic-coaxial network delivers in order to win and keep customers and maximize revenues from the product, Fitch said.

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