Moody's rates Virgin Media Ireland B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Virgin Media Ireland Holdings Ltd. Concurrently, Moody's gave a B2 instrument rating to the €900 million senior secured term loan B1 due 2029 and €100 million senior secured revolving credit facility due 2027 to be raised by Virgin Media Ireland Ltd., a subsidiary of Virgin Media Ireland Holdings.

"Virgin Media Ireland's B2 CFR reflects (1) the company's number two position in the Irish broadband and pay-TV segments despite covering only 49% of homes in the country, (2) the growth potential for Virgin Media Ireland's mobile segment from a relatively low level of subscribers, (3) its technologically advanced hybrid co-axial cable network which has been recently upgraded to the latest Docsis 3.1 standard offering download speeds of up to 1 gigabit per second (Gbps), and (4) the company's 100% ownership by Liberty Global which enjoys a large scale in the European telecom and cable markets, geographical diversification, and strong liquidity,” said Sebastien Cieniewski, Moody's lead analyst for Virgin Media Ireland, in a press release

However, the company’s advantages are offset by its size relative to its peers, the assumption Virgin Media will remain highly leveraged and increasing competition, the agency said.

The term loan proceeds will be distributed to parent Liberty Global plc.

The outlook is stable. The outlook reflects the view that Virgin Media should maintain or slightly grow revenues over the medium-term as price hikes and mobile subscriber growth lessen pressure on broadband subscribers from increasing fibre competition and structural decline in pay-TV subscribers.

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