Fitch affirms DISH

Fitch Ratings said it affirmed DISH Network Corp.'s BB- issuer default rating, along with its wholly owned subsidiary, DISH DBS Corp.

Fitch also said it affirmed the BB-rating assigned to the senior unsecured notes issued by DISH DBS.

The outlook was revised to negative from stable.

The negative outlook encompasses the capital and execution risks associated with DISH's wireless strategy, the agency said.

While DISH has yet to fully articulate its wireless strategy, the company has committed nearly $3.5 billion of capital to acquire wireless spectrum, Fitch said. The 2011 acquired licenses are pending regulatory approval, the agency said.

Fitch said it believes the incremental capital and operating costs associated with a potential wireless network build out will diminish DISH's ability to generate free cash flow, erode operating margins resulting in a weaker credit profile and pressuring the current ratings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.