Fitch: DISH DBS notes BB-

Fitch Ratings said it assigned a BB- rating to DISH DBS Corp.’s issuance of about $1.25 billion of senior unsecured notes.

The proceeds will be used for general corporate purposes, including the refinancing of debt.

DISH DBS is a wholly owned subsidiary of DISH Network Corp. Both DISH Network and DISH DBS have a BB- issuer default rating.

The outlook remains negative.

Drivers of the negative outlook include the lack of visibility into DISH’s wireless strategy, Fitch said, and the potential capital requirements and execution risk associated with that strategy.

The company’s leverage rose in 2013 and has remained higher as DISH built cash to fund the wireless strategy, the agency said.

Fitch said it believes the higher debt levels, along with elevated execution and integration risks associated with DISH’s wireless strategy, limit the company’s financial flexibility at the current ratings level.

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