Fitch rates Techem notes, loans BB, subordinates B

Fitch Ratings said it assigned a final rating of BB to Techem GmbH's €410 million seven-year 6 1/8% senior secured notes and €450 million five-year senior secured loans.

Fitch also said it assigned a final B rating to €325 million eight-year 7 7/8% senior subordinated notes issued by Techem Energy Metering Service GmbH & Co KG.

The new financing refinances legacy senior and junior loans borrowed in 2008 when Techem was acquired by funds owned by Macquarie European Infrastructure Fund II LP, Fitch said.

The assignment of the final ratings follows a review of final documentation that materially conforms to information received previously, the agency said.

The ratings are supported by its leading position as a sub-metering business in its domestic German market and its niche industry, which is characterized by stable recurring revenues, Fitch said.

Techem's business is closely associated with that of utilities - particularly distributors of gas and water -but does not involve the purchase and resale of energy as counterparty, the agency said.

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