S&P affirms Kabel Deutschland

Standard & Poor's said it affirmed the B+ long-term corporate credit rating on Kabel Deutschland GmbH and removed it from CreditWatch, where it was placed on Sept. 20 after the company said it would acquire networks from the Orion Group for about €585 million.

The outlook is negative.

S&P said the affirmation reflects the company's stable revenue stream from its analog cable television offering and EBITDA growth potential from the uptake of high-speed internet and telephony services.

The agency said it is concerned about the issuer's tight covenant headroom under its existing senior term loan in the near to medium term.

The company's adjusted total debt-to-adjusted EBITDA for the past 12 months could be as high as 7.8 times ahead of the acquisition, according to S&P.

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