S&P downgrades Intelsat

S&P said it lowered the corporate credit rating on Intelsat SA, along with the issue-level rating on the 6 5/8% notes due 2022 issued at Intelsat Jackson Holdings SA to CC from CCC.

The agency also said it placed these ratings on CreditWatch with negative implications.

All other issue-level ratings are unchanged.

The downgrades reflect Intelsat's launch of a distressed exchange offer that is considered a selective default because the combination of cash and new securities offered is less than the original par amount of the notes, S&P explained.

The CreditWatch will be resolved in the coming weeks, the agency said.

S&P said it expects to lower the corporate credit rating on Intelsat to SD (selective default), along with the rating on the notes to D once the distressed exchange is complete.

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