S&P affirms Intelsat, cuts PanAmSat

Standard & Poor's said it affirmed its BB- corporate credit rating on Intelsat Ltd. and subsidiaries.

At the same time, the agency said it lowered its corporate credit rating on PanAmSat Corp. and related entities to BB- from BB.

All ratings are removed from CreditWatch, where they were placed with negative implications on Aug. 29, following the announcement of Intelsat's agreement to acquire PanAmSat for $3.2 billion cash for PanAmSat's equity and $3.2 billion in existing PanAmSat debt, the agency added.

S&P said that the corporate credit ratings on Intelsat and PanAmSat are based on a consolidated analytical approach.

The ratings on PanAmSat were lowered because of the pending ownership of this entity by the more leveraged consolidated Intelsat, S&P added, noting that it also assigned a B rating to the proposed $575 million senior notes due 2016 of PanAmSat and assigned a B rating to the proposed $725 million senior notes due 2016 of PanAmSat Holding.

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