Moody’s changes Eutelsat view

Moody's Investors Service said it changed to negative from stable the outlook on the ratings of global satellite services provider Eutelsat Communications SA and its main operating subsidiary, Eutelsat SA.

Concurrently, Moody's affirmed Eutelsat's Baa3 long-term issuer and senior unsecured ratings and Eutelsat Communications's Ba1 senior unsecured bank credit facility ratings.

“The change in outlook to negative from stable reflects the difficult market conditions for Eutelsat and other global satellite operators with continued revenue contraction due to price erosion in the Fixed Data segment, and some pressure on volumes in the Video and Government Services segments,” Ernesto Bisagno, Moody's vice president, senior credit officer and lead analyst for Eutelsat, said in a news release.

“The rating affirmation takes into account Moody's expectations that the company can maintain high margins supporting cash flow generation, partially offsetting the pressure on revenues.”

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