S&P lifts Hughes Satellite notes

Standard & Poor's said it raised its issue-level rating on Hughes Satellite Systems Corp.'s senior unsecured notes to BB- from B+ and revised the recovery rating to 4 from 5.

The 4 recovery rating indicates an expectation for average (30%-50%; upper half of the range) recovery for noteholders in the event of a payment default.

The agency revised the recovery rating based on the company's partial redemption of its $1.1 billion 6½% senior secured notes due 2019.

Hughes funded the $110 million redemption with cash on hand, subsequently lowering the amount of secured debt outstanding and improving the recovery prospects for the unsecured debt.

The issue-level rating on the company's senior secured notes remains BB+ with a recovery rating of 1. The 1 recovery rating indicates an expectation for very high (90%-100%) recovery in the event of a payment default.

The BB- corporate credit rating on Hughes is unchanged and the outlook remains stable.

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