S&P rates Sky Vision notes B

Standard & Poor's said it assigned a B long-term corporate credit rating to PT MNC Sky Vision a B issue rating on the proposed senior secured guaranteed notes due 2015, to be issued by Aerospace Satellite Corp. Holding BV, a special-purpose finance vehicle.

The outlook is positive.

Proceeds will be used to finance the acquisition of the 10 S-band transponders on the SES-7 satellite, while an additional $71 million will be used to upstream cash to its main shareholder PT Global Mediacom Tbk.

"The rating on MSV reflects significant investments required to fund the expected accelerated growth in subscribers, including important investments in set-top boxes; the company's single-satellite risk; foreign exchange exposure from its international content provisioning; and declining potential average revenues per user (ARPU) as penetration increases and lower-priced offerings gain importance," S&P analyst Manuel Guerena said in a statement.

The weaknesses are partially offset by the company's position with 78% market share, considerable growth potential and access to its associated company PT Media Nusantara Citra Tbk.'s (B+/stable) extensive library of proven local content, the agency noted.

After the bond issuance, MSV's debt-to-EBITDA ratio will get close to 3x.

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