S&P drops Dish Network a notch

S&P said it lowered its ratings on Dish Network Corp. a notch, including its issuer rating to CCC+ from B- and its senior secured notes to B from B+.

“There is limited visibility into the timing and ability for U.S.-based Dish Network Corp. to generate sustainably positive free operating cash flow (FOCF) as its retail wireless business is now burning cash, enterprise adoption of 5G private networking has been slow industrywide, wireless startup costs mount, and the company works to remedy a recent cyber-attack,” S&P said in a press release.

The agency also noted Dish has $3 billion in debt maturing in 2024 and more in 2025 and 2026, which will need to be refinanced in tighter credit markets. However, Dish’s unencumbered spectrum assets, valued at about $15 billion in book value, offer it options to raise cash.

The outlook is negative.

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