Fitch affirms Virgin Media

Fitch Ratings said it affirmed Virgin Media Inc.'s long-term issuer default rating at BB- and short-term issuer default rating at B, along with Virgin Media Investment Holdings Ltd.'s senior secured bank facilities at BB+ and Virgin Media Finance plc's senior unsecured notes due 2014 and 2016 at BB.

The outlook is stable.

Although competitive pressures may be easing somewhat in the U.K. broadband market, Fitch said Virgin Media's hybrid fibre co-axial network will retain its superior speed advantage over incumbent BT's network for a number of years yet, a position considered vital for this market.

Despite the recession gripping the U.K. economy, Virgin Media's results for the fourth quarter of 2008 and the first quarter of 2009 show no obvious signs of increased churn or reduced consumer on-net spending, which supports a view of the resilience of the cable business model, the agency said.

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