S&P cuts Eutelsat Communications

S&P said it lowered its ratings for Eutelsat Communications SA (Eutelsat Group) and its debt to B from B+ and its subsidiary Eutelsat SA's debt to B+ from BB-.

Eutelsat Group cut its revenue guidance for fiscal year 2024 (ending June 30) by about €100 million, reduced the mid-point of its EBITDA guidance by 14%, and suspended its guidance for fiscal year 2025 until June because it does not have visibility on the revenues from Eutelsat OneWeb, which provides broadband satellite internet services in low earth orbit (LEO).

“We forecast the company's S&P Global Ratings-adjusted leverage will be about 4.8x-4.9x in fiscal years 2024 and 2025, compared with our previous forecast of 4.3x-4.4x. The change results from a slower-than-expected increase in OneWeb's revenues and profitability,” S&P said in a press release.

The outlook is stable.

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