S&P affirms Unitymedia, rates notes BB-, B-

Standard & Poor's said it affirmed the B+ long-term corporate credit ratings on Unitymedia GmbH and Kabel BW Erste Beteiligungsgesellschaft mbH.

The outlook is stable.

The agency also said it affirmed the ratings on the existing debt issued by Unitymedia entities. The recovery ratings on these debt instruments remain unchanged.

S&P also said it assigned BB- ratings on the like-for-like senior secured notes and B- issue ratings on the like-for-like senior notes that have been proposed under the Unitymedia debt exchange offer.

The recovery ratings on the proposed instruments are 2 and 6, respectively. The 2 rating reflects 70% to 90% expected recovery in a default. The 6 rating reflects 0% to 10% expected recovery in a default.

The announced exchange does not change the current assessment of the respective business risk and financial risk profiles of the company, the agency said.

The corporate credit ratings on both entities remain capped by the rating on their owner, Liberty Global Inc., primarily due to Liberty's full control over the corporate strategy and financial policy of both subsidiaries.

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