Fitch affirms DISH

Fitch Ratings said it affirmed the BB- issuer default ratings of DISH Network Corp. (formerly EchoStar Communications Corp.) and wholly owned subsidiary Echostar DBS Corp. and the BB- rating assigned to EDBS Corp.'s senior unsecured notes.

The outlook is stable.

Given the company's operating profile and credit-protection metrics, the agency believes that DISH's overall credit profile is strong within the rating category, providing the company substantial financial flexibility. Incorporated into the ratings affirmation is Fitch's expectation that the spinoff of EchoStar Holding Corp. effective Jan. 1 will not have a material impact on DISH's financial, operational or credit profile. Fitch believes that the revenues and EBITDA generated by the businesses and assets included in the spinoff are not material in relation to DISH's consolidated financial profile.

The agency said the ratings also reflect its opinion that the effects of growing competition and a slowing economy will weigh on DISH's operating results during 2008 and 2009, likely leading to lower gross additions, sluggish ARPU growth rates, higher subscriber churn rates, increasing customer retention spending and compressing margins.

Leverage was 2.18 times on a consolidated basis as of Sept. 30.

© 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.