Moody's assigns Virgin Media notes Baa3

Moody's Investors Service said it assigned a provisional Baa3 rating to the £750 million worth of senior secured notes due 2021 to be issued by Virgin Media Secured Finance plc, a subsidiary of Virgin Media Inc.

The proceeds will be used to refinance a portion of its bank debt, thereby further improving its debt maturity profile.

The ratings reflect the fact that the transaction is neutral to net debt and does not change Virgin Media's Ba1 corporate family rating, Moody's said.

The ratings further consider the relative ranking of the proposed notes within the company's capital structure as they will rank pari passu with the senior secured bank debt at Virgin Media's subsidiary Virgin Media Investment Holdings Ltd. and the senior secured notes at Virgin Media Secured Finance plc, the agency said. Those instruments are rated Baa3, the agency said.

Moody's said the company's unsecured notes, which are rated Ba2, are at a level in the capital structure above Virgin Media Investment Holdings Ltd. and guaranteed on a subordinated basis by Virgin Media Investment Holdings Ltd. and Virgin Media Investment Ltd.

The ratings are based on the company's solid operating performance, Moody's said, along with its continued progress and focus toward deleveraging over the next two to three years to about 3x.

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