Moody’s assigns DISH notes Ba3

Moody’s Investors Service said it rated DISH Network Corp.’s new $2 billion in senior secured notes Ba3 and downgraded its senior unsecured convertible notes to B3 from B2 and lowered its probability of default rating to B2-PD from B1-PD. Moody’s affirmed DISH’s B2 corporate family rating.

“The downgrade of DISH's unsecured convertible notes is caused by the issuance of the new secured notes, which will result in effective subordination of the unsecured notes and potential disproportionate loss absorption relative to the new secured notes in a default scenario. The new secured notes will benefit from a first-priority lien on the equity interests in ParkerB.com Wireless LLC, owner of the company’s 600 MHz spectrum licenses,” Moody’s said in a press release.

Concurrently, the agency also affirmed subsidiary Dish DBS Corp.'s B2 corporate family rating, Ba3 senior secured notes, B3 senior unsecured debt ratings, and B2-PD PDR rating. DISH's SGL-2 speculative grade liquidity rating is unchanged.

DISH will use the proceeds for general corporate purposes, including the buildout of wireless infrastructure.

The outlook is stable.

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