S&P lifts Kabel Deutschland

Standard & Poor's said it lifted to BB from BB- the issue rating on the €500 million senior secured notes borrowed by Kabel Deutschland Vertrieb und Service GmbH, the operating subsidiary of German cable operator Kabel Deutschland Holding AG.

The ratings were removed from CreditWatch, where it was recently placed with positive implications.

The agency also said it revised upward the recovery rating on this instrument to 2 from 3, indicating 70% to 90% expected recovery in a default.

The agency also said it affirmed the B rating on the recently issued €400 million senior unsecured notes at Kabel Deutschland. The recovery rating remains unchanged at 6, indicating 0% to 10% expected recovery in a default.

The upgrade reflects a view that the recovery prospects for senior secured lenders have improved with the addition of unsecured debt to the group's capital structure, which provides a debt cushion for the senior secured lenders.

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