S&P rates Versatel notes BB+

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Versatel AG, along with a BB+ issue rating to the proposed €525 million senior secured floating rate notes due 2014, with a recovery rating of 1. The notes are issued to refinance its existing €425 million bridge facility. S&P also assigned a BB+ loan rating to the €75 million senior secured super-priority revolving credit facility due 2012, with a recovery rating of 1. All ratings are subject to final documentation.

The outlook is negative.

The ratings are constrained by the difficult operating conditions in the German telecoms market, S&P said.

On the other hand, the ratings benefit from the company's extensive proprietary high density multi-local network covering about 21% of German households, the agency said.

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