Moody’s lowers Intelsat

Moody’s Investors Service said it downgraded Intelsat (Luxembourg) SA's corporate family rating to Ca from Caa2, probability of default rating to Ca-PD from Caa3-PD, senior unsecured notes ratings to C from Ca, speculative grade liquidity rating to SGL-4 from SGL-3, and changed the outlook to negative from stable.

Moody's also downgraded Intelsat Jackson Holdings SA's senior secured credit facilities ratings to B3 from B1, senior secured notes ratings to B3 from B1, and senior unsecured notes ratings to Ca from Caa2.

In addition, Moody's downgraded Intelsat Connect Finance SA's senior unsecured notes rating to C from Ca.

“The rating action follows the company's announcement that Jackson has elected to withhold an interest payment of about $125 million due on April 15, 2020. Jackson has a 30-day grace period to make the missed interest payment before it triggers an event of default,” the agency said in a news release.

If the interest payment is not made within the 30 days, Moody's will consider the event a limited default and will appended the LD (limited default) designation to the PDR, the agency said.

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