S&P affirms Kabel Deutschland

Standard & Poor's said it removed from CreditWatch its BB- long-term corporate credit and senior secured bank loan ratings on Germany-based cable operator Kabel Deutschland GmbH and affirmed all its ratings on the group.

The outlook is stable.

The B long-term senior unsecured debt rating on Kabel Deutschland was also removed from CreditWatch and affirmed. The ratings were originally placed on CreditWatch on Sept. 1 following the company's offer of a comprehensive remedy package, which was substantially more aggressive than its original business plan, in response to the preliminary decision by the German Federal Cartel Office to oppose Kabel Deutschland's plans to merge with three regional cable operators.

S&P said the rating actions follow Kabel Deutschland's announcement on Sept. 20 that it had agreed with the sellers of its three acquisition targets to terminate the share-purchase agreements and withdraw its applications to national and EU competition authorities for approval of the acquisitions.

"The affirmation of the ratings reflect KDG's return to its less-risky original business and financial plan, as well as the company's second-quarter 2004 positive operating trends," said S&P credit analyst Leandro de Torres Zabala.

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