Moody’s drops Ziggo

Moody's Investors Service said it downgraded Ziggo NV's corporate family rating to Ba3 from Ba1 and probability of default rating to Ba3-PD from Ba1-PD.

At the same time, the agency downgraded the rating of the senior secured notes due 2020 at Ziggo BV to Ba2 from Baa3.

All ratings remain under review for downgrade.

The provisional Ba3 ratings for bank debt at Ziggo BV remain unchanged and Moody's assigned a provisional B3 for LGE Holdco VI BV's senior unsecured notes due 2024. LGE Holdco VI, a vehicle used in Liberty Global plc's (Ba3; stable) acquisition of Ziggo is an indirect holding company of Ziggo and currently the ultimate holding company that has issued third party debt in the context of the Ziggo acquisition.

Moody’s said the downgrades follow the consummation of Ziggo's acquisition by Liberty Global in early November and the related leverage increase at Ziggo. Moody's expects that leverage will now be managed at the upper end of Liberty Global's longstanding 4 times-5 times Debt/EBITDA leverage target.

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