Fitch cuts Eutelsat, eyes further downgrade

Fitch Ratings said it downgraded Eutelsat Communications SA's long-term issuer default rating to BBB- from BBB and its senior unsecured rating to BB+ from BBB-.

Eutelsat SA's senior unsecured debt was also downgraded to BBB- from BBB.

All ratings remain on rating watch negative.

The agency said the action follows the company's announcement of its intended merger with OneWeb, a low-earth-orbit satellite constellation operator.

“The downgrade reflects Eutelsat's lower revenue visibility with key segments remaining under pressure, which leads to lower deleveraging flexibility while EBITDA net leverage has increased above our downgrade threshold of 3x,” the agency said in a news release.

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