Fitch: DISH on negative watch

Fitch Ratings said it placed the BB- issuer default rating and outstanding debt of DISH Network Corp. on Rating Watch negative, along with the ratings on its wholly owned subsidiary, DISH DBS Corp.

Fitch also said it assigned a recovery rating of RR4 to the senior unsecured notes issued by DISH DBS.

The negative watch reflects the uncertainty surrounding DISH’s funding strategy and potential negative effect on DISH’s credit profile arising from DISH’s winning bids in the FCC’s Advanced Wireless Services 3 (AWS-3) auction, the agency said.

DISH may not be able to monetize all of its marketable securities or utilize its entire cash balance in order to maintain minimum liquidity requirements, Fitch said.

The watch will be resolved when the company articulates how it intends to fund the spectrum purchase, the agency said.

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