Moody's raises Intelsat

Moody's Investors Service said it upgraded Intelsat Holdings Sarl's corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD, and changed the outlook to positive from stable. At the same time, the agency upgraded Intelsat's main operating company, Intelsat Jackson Holdings SA's senior secured revolving credit facility rating to Ba2 from Ba3, senior secured term loan B and senior secured notes ratings to B2 from B3, and changed its outlook to positive from stable.

"The upgrade reflects upcoming deleveraging from C-band relocation payments while the outlook change reflects the potential for upward rating movement as the company determines how it allocates the remaining proceeds and what the owners exit strategy is," said Peter Adu, a Moody's vice president and senior credit officer, in a press release.

The outlook reflects an expectation for revenue growth in the company's mobility business to more than offset revenue declines in its media segment while it could use C-band relocation payments to repay more debt and/or grow the business, which could support a higher rating, the agency explained.

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