S&P rates Kabel BW notes CCC+, loans B, CCC+

Standard & Poor's said it assigned its B long-term corporate credit rating to German cable-TV operator Kabel Baden-Württemberg GmbH & Co. KG. The outlook is stable.

In addition, S&P assigned its CCC+ long-term rating to related entity Kabel BW Holdings GmbH's offering of €170 million of senior subordinated notes maturing in 2015. The notes are guaranteed on a senior subordinated basis by Kabel Baden-Wurttemberg.

At the same time, S&P assigned its B long-term rating to Kabel Baden-Wurttemberg's proposed €598 million senior secured credit facility, with a recovery rating of 2. Kabel Baden-Wurttemberg's proposed €78 million second-lien loan was also assigned a CCC+ rating.

S&P said the ratings reflect the company's position as a well-established but extremely highly leveraged German cable-TV operator. The stable revenues and cash flows generated by the group's utility-like analogue TV business underpin the ratings. The ratings are, however, weakened by a very aggressive financial policy and by the risks associated with increasing competition from other technology platforms and operators, regulation, and potential industry consolidation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.