Fitch affirms Kabel Deutschland

Fitch Ratings said it affirmed Kabel Deutschland Vertrieb and Service GmbH's issuer default rating at BB with a stable outlook and its senior secured rating at BB+ following the company's announcement that it will acquire TeleColumbus.

The agency said the acquisition has good strategic rationale, improving Kabel Deutschland's growth prospects, and its execution risks are relatively modest.

Kabel Deutschland retains a strong deleveraging capacity, Fitch said. Pro forma for the acquisition, the company's leverage would rise to 3.8 times, conforming to the upper level earlier identified by the agency as still consistent with the current ratings level.

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