Moody’s downgrades Eutelsat

Moody's Investors Service said it downgraded to Ba3 from Ba2 the long-term corporate family rating and to Ba3-PD from Ba2-PD the probability of default rating of Eutelsat Communications SA. Concurrently, Moody's downgraded to Ba3 from Ba2 the ratings on the senior unsecured debt instruments issued by its main operating subsidiary Eutelsat SA, including the €800 million and €600 million notes maturing in October 2025 and July 2027, respectively.

Eutelsat lowered its 2024 adjusted EBITDA guidance to €650 million - €680 million from €725 million - €825 million, and suspended its financial objectives for 2025 until FY24 results, including an expected adjusted EBITDA of €900 million - €1.1 billion.

The revision was caused by the low-earth orbit activities of OneWeb are behind schedule relative to the original roadmap, resulting from delays in some ground stations, the agency said.

"The downgrade to Ba3 reflects the deterioration in the combined group's credit metrics beyond our previous expectations, in light of the slower-than-expected contribution from OneWeb," said Ernesto Bisagno, a Moody's vice president, senior credit officer and lead analyst for Eutelsat, in a press release.

The outlook remains negative.

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