S&P: Unitymedia unaffected

Standard & Poor's said its corporate credit ratings on Unitymedia GmbH (B+/positive) remain unchanged, following the company's announcement that its subsidiary, Unitymedia Hessen GmbH & Co. KG, has signed an agreement to acquire PrimaCom AG's networks in Aachen and Wiesbaden.

These networks serve about 100,000 cable television subscribers, who are already connected to Unitymedia's network, the agency noted.

Although S&P said it considers the purchase price of about €49 million to be aggressive at just over 10 times the EBITDA expected from the acquired subscribers in 2008, it does not significantly alter Unitymedia's currently ample liquidity position or the expected improvement of its financial risk profile in the near term.

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