Moody's lifts Kabel Deutschland

Moody's Investors Service said it upgraded the ratings of the senior secured notes due 2018 issued at Kabel Deutschland Vertrieb & Service GmbH to Baa2 from Ba2 and the ratings of the senior notes due 2017 issued at Kabel Deutschland Holding AG to Baa3 from B1.

The outlook is positive.

At the same time, Moody's withdrew the Ba2 corporate family rating and the Ba2-PD probability of default ratings of Kabel Deutschland Holding following the settlement and completion of the voluntary public takeover offer for Kabel Deutschland Holding by Vodafone Vierte Verwaltungsgesellschaft AG, a subsidiary of Vodafone Group plc, on Oct. 14. Kabel Deutschland Holding is now 76.57%-owned by Vodafone.

Moody's said the ratings upgrades acknowledge that Kabel Deutschland Holding is now part of the much larger (£44.4 billion revenues for the 2012/13 financial year) and highly rated Vodafone Group. While Moody's expects that Vodafone will not provide explicit credit support for the rated Kabel Deutschland Holding debt, the agency believes it will become an integral part of Vodafone's operations in Germany, one of Vodafone's key markets.

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