S&P slashes Dish Network, Dish DBS

S&P said it downgraded its issuer credit ratings on Dish Network Corp. and Dish DBS Corp. to CC from CCC+ and lowered all affected issue-level debt ratings to CC.

EchoStar Corp. recently completed its merger with Dish. It announced consent solicitations for largely sub-par exchanges of certain convertible notes issued at Dish Network and unsecured notes issued at Dish DBS Corp.

“We view the exchanges as equivalent to a default. Holders of existing notes are being offered less than the original promise because the exchange rate is at a significant discount to par for most issues and the maturity dates will be extended to 2030. In exchange, the new notes will all carry a higher interest rate at 10% and be secured by certain assets,” S&P said in a statement.

The agency warned EchoStar’s “capital structure will likely still be unsustainable.”

The outlook is negative.

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