S&P places Intelsat on positive watch

S&P said it placed its ratings for Intelsat SA, including its B+ issuer rating and the ratings on its super-priority revolver and senior secured debt, on CreditWatch with positive implications.

On Tuesday, SES SA announced it will buy Intelsat in a deal valued at about $3.1 billion.

“We expect the transaction will materially improve the combined entity's credit metrics and market position within the fragmented satellite service industry. As a result, we expect at least a one-notch upgrade of Intelsat, which we rate B+. The combined company expects about $220 million of run-rate operating expense synergies and an additional $170 million of capital expenditure synergies, 70% of which it expects to execute by year three post-closing,” the agency said in a press release.

S&P said it aims to resolve the positive watch once the deal closes, expected in the second half of 2025.

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