Moody's rates Telenet Finance notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the €350 million senior secured notes due 2020 to be issued by Telenet Finance Luxembourg SCA.

The outlook is stable.

Proceeds will be used to refinance up to €200 million of existing bank debt with the shortest maturities under the senior credit facility and the remainder to on-lend to Telenet NV for general corporate purposes, which may include shareholder disbursements in 2011, in the absence of material debt-financed acquisitions.

The Ba3 corporate family rating reflects Telenet's continued solid operational performance supported by the company's multi-play strategy, the agency said.

The rating also considers intensive competition, the company's limited size of operations and the expectation that it will continue to pay out all of the internally generated free cash flow in shareholder disbursements, the agency noted.

As of June 30, the company's reported last 12 month net total debt leverage was 3.6x pro-forma, or an adjusted gross debt-to-EBITDA ratio of 4.0x.

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