Satellite services provider SES has acknowledged a credit rating action announced by Fitch Ratings and reiterated its strategy to strengthen its key metrics.
Following the release of the company’s Q3 results and Intelsat integration update, ratings agency Fitch downgraded the company’s Long-Term Issuer Default Rating (IDR) and senior unsecured debt to ‘BBB-‘ from ‘BBB’. The agency graded the outlook on the IDR as ‘stable’.
With expected reductions in EBITDA over the medium term driven primarily by competition in the fixed data sector and the impact of the Intelsat acquisition in July, Fitch expects EBITDA net leverage to decline to 2.8x in 2027 against previous expectations of 2.3x for the period.
SES’s management has reiterated the company continues to execute its strategy and has a clear view of the “multiple cash generating levers” it believes will be able to substantially support and accelerate the deleveraging plan.
“It remains the aim of the management to delever with a policy objective of reducing adjusted net leverage (defined as Adjusted Net Debt divided by Adjusted EBITDA) to at least 3x or below,” said SES.
