Fitch rates Kabel loans BB+

Fitch Ratings said it assigned Kabel Deutschland Vertrieb and Service GmbH's proposed $500 million senior secured term loan a BB+ rating.

The company's long-term issuer default rating is BB.

The outlook is stable.

Proceeds will be used for refinancing, which will help extend the company's debt maturity profile and reduce its 2014 refinancing exposure without any impact on leverage, according to the agency.

The new term loan will be issued by the company as a tranche under the senior credit facilities and will benefit from the same covenants and security package. The instrument's maturity is February 2019.

KDG has significantly delevered to a 3.7x net debt to adjusted EBITDA as of the end of September and management expects this ratio to drop to below 3.5x, within a targeted range of between 3.0x and 3.5x by end of March, Fitch said..

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