Moody's rates Echostar bonds Ba3

Moody's Investors Service said it assigned a Ba3 (LGD4, 65%) rating to the new bond issuance of DISH Network Corp.'s subsidiary, Echostar DBS Corp. The new $750 million 7¾% senior unsecured bonds mature on May 31, 2015.

The outlook is stable.

Proceeds will be used for general corporate purposes.

The agency said DISH Network's Ba3 corporate family rating continues to reflect the uncertainty regarding management's strategic direction, particularly given its competitive disadvantage relative to rival triple-play product offerings, its recent investment in broadcast spectrum and the potential for continued shareholder-friendly activity. Moody's also remains concerned about competition from cable and telecommunication companies.

Partially mitigating these concerns are company's very strong credit metrics, strong liquidity, large subscriber base and attractive near-term operating performance, the agency said.

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