July 24, 2014 / 2:05 PM / in 4 years

Fitch Withdraws KDG's Rating

(The following statement was released by the rating agency) MOSCOW/LONDON, July 24 (Fitch) Fitch Ratings has withdrawn Kabel Deutschland Vertrieb and Service GmbH's (KDG) Issuer Default Rating (IDR) of 'BBB+'. The rating remained on Rating Watch Negative (RWN), prior to withdrawal, in line with the RWN on its parent, Vodafone Group Plc. The rating was withdrawn as it is no longer considered analytically meaningful after the company redeemed all of its bonds with shareholder loans at end-June 2014. KDG is an established cable provider in Germany with a growing broadband, telephony and premium/pay-TV franchise. Vodafone acquired a majority 76.6% stake in the company in October 2013, and is planning to use it as its core operational platform for wireline development in Germany. KEY RATING DRIVERS Following its acquisition by Vodafone, Fitch rated KDG using a top-down approach, at a notch lower than the parent's rating. Operating and strategic ties between the two companies are strong. KDG gives Vodafone an opportunity to provide facilities-based wireline services in Germany, which complement its existing alternative fixed-line franchise and strong mobile positions in the country. Vodafone has completely replaced KDG's external funding with shareholder loans and liquidity helplines. The latest EUR1,142m shareholder loan was provided in June 2014. This was used to repay KDG's USD700m of senior secured notes due 2018 and Kabel Deutschland Holding AG's EUR400m of senior unsecured notes due 2017. KDG no longer has any outstanding public debt instruments. Contact: Principal Analyst Slava Bunkov Associate Director +7 495 956 9931 Supervisory Analyst Nikolai Lukashevich, CFA Senior Director +7 495 956 9968 Fitch Ratings CIS Ltd 26 Valovaya Street Moscow 115054 Committee Chair Damien Chew, CFA Senior Director +44 20 3530 1424 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Additional information is available on www.fitchratings.com. For regulatory purposes in various jurisdictions, the supervisory analyst named above is deemed to be the primary analyst for this issuer; the principal analyst is deemed to be the secondary. Applicable criteria, 'Corporate Rating Methodology', dated 28 May 2014, are available at www.fitchratings.com. Applicable Criteria and Related Research: Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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