7/29/2019, 9:52 PM (Source: TeleTrader)
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Moody's warns on Dish's rating after wireless deal

IPTV and satellite television provider Dish Network Corp. was placed under review with negative implications by Moody's Investors Service. The report published on Monday revealed the potential downgrade affects the Ba3 corporate family and senior unsecured rating and the Ba2-PD grade for the probability of default. Subsidiary Dish DBS Corp. is also affected but the speculative grade liquidity SGL-2 isn't, the credit appraiser added.

The Meridian, Colorado–based company "already limited financial capacity for higher debt and leverage," the credit rating agency stressed and highlighted the impact of the agreement facilitated by the United States Department of Justice. Dish accepted to buy the wireless service and spectrum assets for $5 billion from Sprint as it was determined a condition for the telecommunication operator's merger with T-Mobile. Under the terms of the arrangement, it will have access to the latter's network for seven years together with a five-year option to acquire towers and network equipment and a package of retail assets.

The number of Dish's pay-TV subscribers is decreasing and its leverage is high, Moody's warned.

Baha Breaking News (BBN) / IT