S&P rates Intelsat Jackson notes B+

Standard & Poor's said it assigned a B+ rating and 2 recovery ratings to Intelsat Jackson Holdings SA's proposed $900 million of senior notes due 2020. The 2 rating indicates 70% to 90% expected recovery in a default. The proposed notes are guaranteed by Intelsat Subsidiary Holding Co. SA. The proceeds will be used refinance the 9¼% senior notes due 2014 and the 6.875% senior secured notes due 2028, both of which reside at Intelsat Corp. The agency said it also affirmed the B corporate credit rating on parent Intelsat Global SA.

The outlook is stable.

The ratings reflect its highly leveraged financial profile and expectations for modestly negative-free operating cash flow, which overshadows its attractive business characteristics, S&P said.

The agency said it considers the business risk profile to be "strong," reflecting the company's high profit margins, global scale, strong geographic diversification and a revenue backlog that provides for significant revenue visibility.

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