Moody’s eyes Hughes Satellite for trim

Moody's Investors Service said it placed Hughes Satellite Systems Corp.'s ratings, including its Ba3 corporate family rating, its Ba1 senior secured notes rating, and its B2 senior unsecured notes rating, on review for downgrade. The company's speculative grade liquidity rating was unchanged at SGL-1.

On Tuesday, Hughes’ unrated parent EchoStar Corp. and DISH Network Corp., rated Caa1, agreed to merge in an all-stock deal.

"Hughes' ratings have been put on review for downgrade because its parent is merging with Dish, a company that has a weaker credit profile," said Peter Adu, a Moody's vice president and senior credit officer.

The review will consider the final capital structure, effect on liquidity, integration risks, potential synergies, competitive dynamics, deleveraging potential, and growth strategy for the combined company. Moody's plans to finish the review at or near to transaction close expected at year-end 2023.

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