S&P gives Echostar DBS notes BB-

Standard & Poor's said it assigned a BB- rating to Echostar DBS Corp.'s aggregate $500 million senior notes with maturities of 2013 and 2016.

The agency said that proceeds will be used as the permanent financing of the redemption of the company's outstanding floating-rate senior notes due 2008.

The corporate credit rating of Echostar DBS is BB- and reflects that of its parent EchoStar Communications Corp. (BB-/stable), the agency said.

The outlook is stable.

"The ratings on EchoStar Communications reflect intense competition from cable TV system operators and its larger DTH rival, DIRECTV Group," said S&P credit analyst said Catherine Cosentino.

Some concern surrounds the company's longer-term competitive position from its inability to provide the high-speed data, voice and advanced two-way video services available from cable companies and likely to be offered by phone companies over the next few years, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.