Moody's: Kabel Deutschland unaffected

Moody's Investors Service said it notes that Kabel Deutschland GmbH's proposed remedy package, as announced on Sept. 1, will have no immediate impact on the company's ratings or outlook.

The remedy package (put forward in response to the Federal Cartel Office initial rejection of Kabel Deutschland's pending acquisitions) includes a commitment by the company to upgrade more than 50% of homes passed for high-speed internet access over the next three years.

While Moody's views the proposed commitment to increase the scope of the company's high-speed internet business plan as a credit negative, the magnitude of the expected capital requirements associated with the proposed plan (and the incremental business risks) are not sufficient to warrant any rating changes at this time.

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