Moody's lifts Virgin Media

Moody's Investors Service said it upgraded the corporate family and probability-of-default ratings of Virgin Media Inc. to Ba2 from Ba3 and senior unsecured notes to Ba3 from B1. The ratings for the senior secured bank facilities and senior secured notes remain unchanged at Ba1.

The outlook remains positive.

Moody's said the upgrade reflects the clarity of Virgin Media's medium-term financial policy, recent capital structure actions, continued robust operating performance into the second quarter and its strong liquidity position.

Following its second-quarter results, Virgin Media announced that over the next two to three years, it will aim to delever to about 3 times net debt to operating income before depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges as calculated by Virgin Media, according to the agency.

This ratio stood at 4.0x for the fiscal year ending Dec. 31, 2009 and 3.7x (on an annualized basis) as of June 30.

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