Moody’s rates Intelsat Connect notes Ca

Moody's Investors Service said it assigned a Ca rating to Intelsat Connect Finance SA' s $750 million senior unsecured notes, affirmed Intelsat SA's (Intelsat) Caa2 corporate family rating, Caa3-PD/LD (with the /LD suffix added for one day) probability of default rating, and maintained the outlook at negative.

All existing debt instrument ratings in the corporate family were affirmed, as was Intelsat's speculative grade liquidity rating at SGL-3.

Intelsat is the senior-most entity in the Intelsat group of companies and is the entity at which Moody's maintains the corporate family rating, probability of default rating and speculative grade liquidity ratings, and is the only company in the family issuing financial statements. Intelsat guarantees debts at its subsidiary, Intelsat (Luxembourg) SA and, as well, at Intelsat (Luxembourg)'s subsidiary, Intelsat Jackson Holdings SA.

Intelsat Connect is a newly created company that sits between Luxembourg and Jackson; the guarantee structure also flows through Intelsat Connect.

Intelsat Connect’s new notes fund the repurchase of certain Luxembourg notes.

Moody's said it assessed the transaction as comprising a distressed exchange (DE) and a default because, in part, the Luxembourg notes are being purchased at a significant discount to par.

Accordingly, the agency appended the /LD limited default indicator to Intelsat's probability of default rating; this will remain for one business day.

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