Moody's rates UPC Polska notes B3

Moody's Investors Service said it assigned prospective B3 senior implied and senior unsecured issuer ratings to United GlobalCom Inc's indirect subsidiary, UPC Polska LLC, and assigned a prospective B3 rating to Polska's proposed $100 million senior unsecured notes due 2007.

The outlook is stable.

Moody's said the ratings of Polska reflect the company's high debt leverage levels (on a debt to EBITDA basis); the expectation for relatively high ongoing capital expenditures given the largely non-upgraded status of the company's network.

The ratings positively reflect the significant debt reduction expected to result from the company's pending balance sheet restructuring; the scale benefits afforded by the company's large cable television network (which covers eight of the 10 largest cities in Poland) and sizeable subscriber base; the company's success in increasing revenues and EBITDA over the past year; relatively strong covenant indenture protection provided to proposed noteholder's with respect to additional debt; and the indirect equity sponsorship of UGC which maintains broader management and technological expertise and greater access to the capital markets.

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