Moody's: Kabel unaffected

Moody's Investors Service said that Kabel Deutschland GmbH's Ba3 rating (negative outlook) remained unchanged following the company's announcement of its financing package for the acquisition of 1.2 million subscribers announced in September as well as an anticipated acquisition of additional 400,000 subscribers in its area.

The agency said that the overall financing package will be comprised of an additional tranche of €650 million drawn under the existing senior secured facility and existing liquidity provided by cash and availability under its revolving credit facility while the remaining part of the overall package will be contributed from the recent asset sales.

Moody's said it notes that the anticipated increase in the senior secured debt is likely to have a negative impact on the LGD assessment (currently LGD-5) of the senior notes.

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