Fitch rates Eutelsat BBB

Fitch Ratings said it assigned a long-term issuer default rating of BBB to Eutelsat Communications SA, along with a senior unsecured rating of BBB to Eutelsat SA.

The outlook is stable.

Eutelsat is a leading global satellite operator with a strong position in the video segment that underpins its cash-flow generation, credit profile and ratings, Fitch said.

Pressure on EBITDA and an increase in capital leases during the financial year to June 2016 has removed headroom within the rating in the short term, the agency said.

However, underlying cash flow generation remains robust, providing scope to withstand pressure and capacity and flexibility to gradually improve leverage, Fitch said.

Maintaining this capacity and flexibility is core to sustaining Eutelsat's rating, the agency added.

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