Fitch affirms Kabel Deutschland

Fitch Ratings said it affirmed Kabel Deutschland Vertrieb und Service GmbH & Co's senior unsecured rating at BB- with a stable outlook and its senior secured bank facilities at BB+. At the same time, it has affirmed holding company, Kabel Deutschland GmbH's senior notes at B+.

Fitch said the BB- rating reflects the company's well established and stable subscriber base, low but predictable average revenue per subscriber, and well-contained operating cost base.

The rating also takes into account that despite the company's strong and consistent cash flow generation, its high debt burden has led to significant cash interest charges and a balance sheet that is unlikely to de-leverage quickly, the agency said. Capital expenditure associated with the digital roll-out and small bolt-on acquisitions have further affected its free cash flows.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.