Fitch rates Telenet loans BB

Fitch Ratings said it assigned a BB rating to Telenet BidCo NV's new €2.3 billion senior secured bank facility, which consists of a €530 million five-year term loan A, a €532.5 million 61/2-year term loan B, a €1.0625 billion eight-year term loan C and a €175 million seven-year revolving credit facility.

The outlook is stable.

The rating of the new bank facilities is one notch lower (BB) than that of the bank facility being replaced (BB+). The agency said this compression relative to Telenet's BB- long-term issuer default rating reflects the higher leverage multiple the company has now indicated it will run its business at, along with the fact that, once the refinancing and capital distribution are complete, the company will be funded largely with senior bank debt.

At the end of 2006, Telenet had a senior debt-to-EBITDA ratio of about 1.9 times and total leverage of 3.8x. Fitch estimates that the company will end 2007 with leverage in the range of 4.7 times to 4.8 times.

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