S&P ups some Unitymedia notes to B

Standard & Poor's said it raised the rating on Unitymedia GmbH's (B+/positive) €215 million, €235 million and $151 million subordinated unsecured notes to B from B- and recovery ratings to 5 from 6.

Ratings on the €100 million senior secured bank loan facility and €1.275 billion senior secured floating-rate notes issued by subsidiaries Unitymedia Hessen GmbH & Co. KG and Unitymedia NRW GmbH remain at BB and the recovery rating at 1.

"The revision of the recovery ratings for the subordinated unsecured debt issues mainly reflects our modified approach on repurchased debt that has not been canceled," S&P analyst Carlo Castelli said in a written statement.

By Sept. 1, the company had bought back €236 million par value of floating-rate notes, the analyst noted. "We now assume that this debt is unlikely to be drawn during the path to default, whereas in our previous analysis we had assumed that, to provide additional liquidity, the repurchased debt would have been resold to the market prior to default," Castelli said.

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