Moody's: Unity Media's ratings unaffected

Moody's Investors Service said it believes the sale by Unity Media GmbH of the subscribers of Tele Columbus GmbH & Co. KG will not have any immediate impact on Unity Media's ratings. Unity has also agreed to acquire over 500,000 of Tele Columbus' "in-the-region" subscribers.

In the agency's opinion, the sale of the Tele Columbus will streamline Unity Media's corporate structure and will allow the company to focus its efforts on development of its cable and satellite offering through arena Sport Rechte und Marketing GmbH.

Moody's said the acquisition of the "in-the-region" subscribers by Unity Media from Tele Columbus will be essentially financed through the sale proceeds from Kabel BW Holding GmbH and ewt. This transaction will not result in any additional debt incurrence. Furthermore, EBITDA generated by subscribers acquired from Tele Columbus (around €23 million) will be brought in the ring-fenced entity of the bond issuer thus somewhat enhancing the bondholders' position, the agency said.

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