S&P rates DISH notes BB-

Standard & Poor's said it assigned a BB- rating and 3 recovery rating to DISH Network Corp.'s proposed $1 billion of senior unsecured notes issued by subsidiary, DISH DBS Corp.

The 3 recovery rating indicates 50% to 70% expected recovery in a default.

The proceeds will be used for general corporate purposes.

Under the proposed issuance size, pro forma fully adjusted debt-to-EBITDA would rise to about 3.6x as of Sept. 30, 2012, S&P said.

Our BB- corporate credit rating and positive outlook on the company remain unchanged.

S&P noted that DISH recently received approval from the Federal Communications Commission to deploy a terrestrial wireless network with its 40 MHz of AWS-4 spectrum, subject to certain power limitations on its uplink spectrum.

Under terms of the ruling, DISH will be required to make its wireless service available to at least 40% of the population in areas covered by its spectrum within the next four years, S&P said, and 70% within seven years.

If DISH is unable to meet the 40% threshold in four years, it must meet 70% coverage in six, rather than seven years, the agency said.

Upgrade potential continues to hinge on the company's ability to execute on this strategy in such a manner that leverage would remain under 4x, S&P said.

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