Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2
- Creatore Discussione gionmorg
- Data di Inizio
Moody's downgrades Intelsat's CFR to Ca
15 Apr 2020
Approximately $14 billion of rated debt affected
Toronto, April 15, 2020 -- Moody's Investors Service (Moody's) downgraded Intelsat (Luxembourg) S.A.'s (Intelsat) corporate family rating (CFR) to Ca from Caa2, probability of default rating (PDR) to Ca-PD from Caa3-PD, senior unsecured notes ratings to C from Ca, speculative grade liquidity rating to SGL-4 from SGL-3, and changed the outlook to negative from stable. Moody's also downgraded Intelsat Jackson Holdings S.A.'s (Jackson) senior secured credit facilities ratings to B3 from B1, senior secured notes ratings to B3 from B1, and senior unsecured notes ratings to Ca from Caa2. In addition, Moody's downgraded Intelsat Connect Finance S.A.'s senior unsecured notes rating to C from Ca. The rating action follows the company's announcement that Jackson has elected to withhold an interest payment of about $125 million due on April 15, 2020 [1].
Jackson has a 30 day grace period to make the missed interest payment before it triggers an event of default. If the interest payment is not made within the 30 days, Moody's will consider the event a limited default and will appended the "/LD" (limited default) designation to the PDR.
"The downgrade reflects the high likelihood of a debt restructuring in the near term", said Peter Adu, Moody's Vice President and Senior Analyst.
Ratings Downgraded:
Issuer: Intelsat (Luxembourg) S.A.
Corporate Family Rating, to Ca from Caa2
Probability of Default Rating, to Ca-PD from Caa3-PD
Gtd. Senior Unsecured Notes, to C (LGD6) from Ca (LGD5)
Speculative Grade Liquidity Rating, to SGL-4 from SGL-3
Issuer: Intelsat Jackson Holdings S.A.
Gtd. Senior Secured Bank Credit Facilities, to B3 (LGD2) from B1 (LGD1)
Gtd. Senior Secured Notes, to B3 (LGD2) from B1 (LGD1)
Gtd. Senior Unsecured Notes, to Ca (LGD4) from Caa2 (LGD3)
Issuer: Intelsat Connect Finance S.A.
Gtd. Senior Unsecured Notes, to C (LGD5) from Ca (LGD4)
Outlook Action:
Issuer: Intelsat (Luxembourg) S.A.
Outlook, Changed to Negative from Stable
RATINGS RATIONALE
Intelsat's Ca CFR is constrained by: (1) expectations that it will pursue a debt restructuring in the near term because of the missed interest payment; (2) unsustainable capital structure given its large debt load and expectations that leverage (adjusted Debt/EBITDA) will be sustained above 10x in the next 12 to 18 months (10.5x for 2019); (3) declining revenue and EBITDA due to pressures in its business segments; and (4) weak liquidity. The rating benefits from: (1) the company's large satellite fleet and revenue backlog.
Intelsat's environmental risk is evolving. The company owns operational satellites as well as ones that have lived out their useful lives and have become space debris. Given the number of satellites to be launched in the future, this debris will be increasingly costly for operators.
Intelsat is exposed to social risk. Technological advancement is impacting the way customers consume data. As a result of the sensitive nature of information Intelsat handles, the company will be impacted meaningfully if data security breaches occur.
Intelsat's governance risk is elevated. The company capital structure is unsustainable due to high leverage and large debt load.
Intelsat has weak liquidity (SGL-4). Sources amount to $811 million of cash at Q4/2019 while uses will exceed $800 million in the next 18 months. Uses of liquidity include $421 million of debt due in June 2021, at least $100 million of expected negative free cash flow generation in the next 18 months, while upfront costs to clear C-band spectrum in order to receive proceeds totaling $4.85 billion in September 2021 and September 2023 could be significant. Intelsat's only source of liquidity is its balance sheet cash as it has no revolving credit facility. The company has limited ability to generate liquidity from asset sales in the near term.
The outlook is negative because the company is likely to restructure its debt in the near term.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings will be downgraded if the company restructures its debt. The ratings will be upgraded if the company reduces debt materially and improves its liquidity profile.
The principal methodology used in these ratings was Communications Infrastructure Industry published in September 2017 and available at Moodys.com. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
Headquartered in Luxembourg, and with administrative offices in McLean, VA, Intelsat is one of the largest fixed satellite services operators in the world. Revenue for the fiscal year ended December 31, 2019 was $2.1 billion.
matteotosi1985
Forumer attivo
Una curiosità
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mi sono andato a leggere un po’ la storia di Noble..
praticamente viene da una ristrutturazione e sta messa malissimo...
ma gli interessi sulle obbligazioni attuali e quindi post ristrutturazione sono stati pagati che voi sappiate ??
giusto per togliermi il dubbio
ISIN US65504LAP22
Noble24 NTS 7.75
Cedola semestrale gennaio luglio
fabriziof
Forumer storico
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IL MARATONETA
Forumer storico
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fabriziof
Forumer storico
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IL MARATONETA
Forumer storico
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matteotosi1985
Forumer attivo
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