S&P assigns Hughes B

Standard & Poor's said it assigned its B corporate credit rating to Hughes Communications Inc., parent of Hughes Network Systems LLC.

At the same time, the agency said it withdrew the corporate credit rating on Hughes Network Systems, adding that this reflects its consolidated entity ratings approach, which incorporates the parent and its commitment to funding the operations of the subsidiary.

The outlook is positive.

According to S&P, the ratings on Hughes reflect a highly leveraged financial profile, especially when adjusted for operating and transponder leases while it also reflects uncertain long-term growth prospects for the company's consumer and small business broadband service because this service has fewer capabilities than faster cable and telephone data services, which could limit growth as competitors expand their service coverage.

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