Fitch cuts Virgin Media

Fitch Ratings said it downgraded Virgin Media Inc.'s long-term issuer default rating to B+ from BB+.

The outlook is stable.

The downgrade follows the acquisition of Virgin Media by Liberty Global, Inc.

Fitch said it expects LGI to run Virgin Media's leverage towards the higher end of a 4 times to 5 times net debt/EBITDA ratio, as it does with its other European cable subsidiaries. Total debt at closing, especially senior secured debt, is higher than Fitch initially expected, which led to lower recovery rates than previous anticipated when Fitch put Virgin Media's ratings on rating watch negative on Feb. 6.

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