Fitch ups Intelsat IDR to B

Fitch Ratings said it has upgraded the issuer default rating for Intelsat to B from B- pro forma for its pending acquisition of PanAmSat.

The ratings are also removed from rating watch negative.

The outlook is stable.

Fitch has also initiated ratings for all of the PanAmSat entities assuming that the pending acquisition and associated debt issuances close under the announced terms. About $12 billion of debt is covered by these actions.

Fitch said the ratings reflect the combined company's position as the largest fixed satellite services provider and contracted and diverse revenue stream. The ratings are also based on Intelsat's significant leverage on a pro forma basis for the acquisition and competition from lower-cost terrestrial fiber optic cable.

More specifically, Fitch has taken the following rating actions:

Intelsat, Ltd.: issuer default rating upgraded to B from B- and senior unsecured notes affirmed at CCC.; Intelsat (Bermuda), Ltd.: IDR upgraded to B from B-, expects to rate proposed senior unsecured guaranteed notes BB- and expects to rate proposed senior unsecured non-guaranteed notes CCC+; Intelsat Intermediate Holding Co. Ltd.: IDR assigned B, senior unsecured discount notes affirmed at B-; Intelsat Subsidiary Holding Co. Ltd.: IDR upgraded to B from B-, senior secured credit facilities upgraded to BB from BB- and senior unsecured notes upgraded to BB- from B+; PanAmSat Holding Corp.: IDR assigned B, and if tender offer is not consummated, Fitch expects to rate proposed senior unsecured notes CCC+ and senior unsecured discount notes assigned CCC+; PanAmSat Corp.: IDR assigned B, senior secured credit facilities assigned BB rating, senior secured notes assigned BB rating, senior unsecured notes assigned B rating and Fitch expects to rate proposed senior unsecured notes B.

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