S&P ups Kabel outlook to stable

Standard & Poor's said it revised its outlook on Kabel Deutschland GmbH to stable from negative while the B+ long-term corporate credit rating was affirmed.

The outlook revision acknowledges the good near-term revenue and EBITDA growth prospects from the uptake of high-speed internet and telephony services and from digital pay-TV services, which should result in improving credit measures in the next 12 months, the agency said.

Furthermore, S&P noted that Kabel's financial flexibility in terms of available cash reserves and covenant headroom under its existing senior term loan documentation in the near to medium term have improved following Kabel's decision to buy only 1.1 million CATV subscribers rather than the originally envisaged maximum of up to 1.6 million from the Orion Group for about €500 million.

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