Moody's ups Kabel Deutschland

Moody's Investors Service said it upgraded the ratings of Kabel Deutschland GmbH. The outlook is stable.

Moody's upgraded Kabel Deutschland's senior implied rating to Ba3 from B1, $610 million 10 5/8% senior notes due 2014 to B2 from B3, €250 million 10¾% senior notes due 2014 to B2 from B3 and senior unsecured issuer rating to B3 from Caa1.

Moody's said the upgrade follows the company's agreement to terminate its share purchase agreements to acquire the three remaining network level 3 German cable regions and reflects the lower leverage that is expected to result therefrom.

Pro forma for the dividend payment allowed as a result of the termination of the purchase agreements, Kabel Deutschland's leverage will be about 4.7x net debt/EBITDA relative to 5.3x as incorporated in Moody's original rating scenario for no acquisitions.

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