S&P upgrades Intelsat

S&P said it raised the corporate credit rating on Intelsat SA to CCC from SD (selective default).

The agency also said it raised the ratings on Intelsat's 5½% senior notes due 2023 and 7½% senior notes due 2021 to CCC from CC.

S&P also said it raised the rating on Intelsat's 6 5/8% senior notes due 2022 to CCC from D. The recovery ratings remain at 4, indicating 30% to 50% expected default recovery.

The outlook is negative.

The upgrades follow a review of Intelsat's capital structure and liquidity following the completion of its recently announced tender offer, S&P said.

When the company announced its tender transaction in May, the agency said it viewed the below-par debt repurchases of its 6 5/8% senior notes due 2022 as a distressed restructuring and tantamount to default.

The negative outlook reflects the potential for additional subpar debt exchanges given the company's current debt trading levels, S&P said.

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