Question-and-Answer Session
Operator
Thank you. Today's question and answer session will be conducted electronically. [Operator Instructions]. We will take our first question from Jeff Wlodarczak, Wachovia.
JeffWlodarczak - Wachovia
Good morning guys, two questions. Mike can you provide more color on that RGU network, using your analogy from the analyst day is 1.6 Mutumbo taken a 3 or is that Allen Iverson taking a 3. And then there's been significant tightening in the credit markets. Can you talk about if for target leverage ratio four to five times gross leverage has changed the result? Thanks.
Michael T. Fries - President and Chief Executive Officer
Sure. That's an excellent way to put the RGU question. I think what we said... what Charlie and Gene said is sort of what we are going to stick to here, we have put out 1.6 million as our guidance, we aren't necessarily changing that guidance. We are encouraged by the activity that Gene Musselman described in the two... in the primary affected markets in Central and Eastern Europe and we are really bullish on the fourth quarter which for us is anywhere from 35 to 40% of our net adds. So it's really hard in advance of that fourth quarter to take your eye off the ball or to somehow adjust your thinking for the full year. Whether it is Mutumbo or Allen Iverson; that's too tough. In credit markets, from our perspective hadn't really impacted us in any meaningful way. We are as Charlie and his team have been focused on... we really de-risked our balance sheet, our interest rates are almost 90% plus hedged, our currencies are hedged, any amortizations are pushed out and we are free cash flow positive.
So as we sit here today I think our balance sheet is perfectly aligned to take advantage of the opportunities if they do arrive in the M&A environment or to continue to buy our stock. But we don't feel like we are pressured or feeling any additional pressure because of what's happening in these volatile credit markets. We haven't changed our view on four to five times. We think that's still the right place for us to be and as John tells us consistently we have all been here before. So we just stay patient and keep our eye on the ball.
Charles H.R. Bracken - Senior Vice President, Co-Chief Financial Officer (and Principal Financial Officer)
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