Fitch affirms Kabel Deutschland

Fitch Ratings said it affirmed Kabel Deutschland Vertrieb und Service GmbH & Co. AG's long-term issuer default rating at BB- and senior secured bank facilities at BB+.

Fitch affirmed holding company Kabel Deutschland GmbH's senior notes at BB-.

The outlook is stable.

The affirmations follow the company's announcement of the financing details related to the acquisition of subscribers from the Orion Group.

"Although the transaction implies an incremental increase in debt, the deal provides very valuable direct access to potentially an additional 1.6 million subscribers," Richard Petit, associate director for Fitch, said in a written statement.

The company "will immediately benefit from the combined one-off revenue and margin uplift as indirect relationships are converted to direct ones, the strengthening of its previously declining access base and the capacity to market its triple-play offering in a more effective manner than under previous wholesale agreements," Petit said.

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