S&P gives B to Avanti notes

Standard & Poor's said it assigned its B- long-term corporate credit rating to Avanti Communications Group plc.

The outlook is stable.

At the same time, the agency assigned its B issue rating to Avanti's $370 million senior secured notes. The recovery rating on these notes is 2, indicating an expectation of substantial (70%-90%) recovery prospects in the event of a payment default.

S&P said the ratings on Avanti reflect its assessment of the company's business risk profile as "weak" and its financial risk profile as "highly leveraged."

The assessment of Avanti's business risk profile is constrained by the agency's view that the company is a small player and is in the developing, or "ramp-up," phase, with a limited fleet of only two satellites, one of which is particularly small; the Hylas 1 has only eight uplink spot beams.

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