Moody's rates Unitymedia notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the €350 million senior secured notes due 2023 being issued by Unitymedia Hessen GmbH & Co. KG and Unitymedia NRW GmbH, subsidiaries of Unitymedia KabelBW GmbH (B1 corporate family rating).

The company's ratings remain under review for downgrade where they were placed in February following the announcement that the company's ultimate corporate parent, Liberty Global Inc., agreed to buy Virgin Media Inc., according to the agency.

Proceeds will be used to redeem a portion of the shareholder loan at the company level, the agency noted.

The company estimated its ratio of total covenant senior debt to adjusted annualized EBITDA at 3.8x as of Dec. 31, pro forma for the transaction, compared with a 4.25x maintenance covenant level in the company's revolving credit facility, Moody's said.

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