Moody's affirms Kabel Deutschland

Moody's Investors Service said it affirmed the existing ratings of Kabel Deutschland GmbH following the €400 million pay-in kind bond issuance at the company's holding company.

Affected ratings include the senior implied rating affirmed at Ba3; the $610 million 10.625% senior notes due 2014 affirmed at B2; the €250 million 10.75% senior notes due 2014 affirmed at B2; and the senior unsecured issuer rating affirmed at B3.

Proceeds from the holdco notes, which are not rated, will be used to fund a shareholder distribution and pay transaction expenses.

Moody's said the affirmation of Kabel Deutschland's ratings reflects the expected "ring-fencing" of the company from the holding company issuer and the resultant limited (albeit, still negative) impact that the holding company debt incurrence is expected to have for the creditors within the restricted (and rated) group.

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