S&P ups Hughes Electronics ratings

Standard & Poor's said it raised its ratings on Hughes Electronics Corp. and subsidiaries, including the corporate credit rating to BB from B+.

Subsidiaries affected by the upgrade include DirectTV Holdings LLC, which had its senior secured debt rating raised to BB from BB- and senior unsecured debt lifted to BB- from B, along with PanAmSat Corp, which had its senior secured bank loan rating and senior secured debt rating raised to BB from BB- and senior unsecured debt raised to B+ from B-.

The ratings remain on CreditWatch with positive implications.

S&P said the upgrade is based on Hughes' improving operating and financial performance, while the positive CreditWatch status reflects potential ratings upside following News Corp. Ltd.'s (BBB-/stable/--) pending acquisition of 34% of the company in a transaction likely to close by the end of 2003 or in early 2004.

The ratings on the senior secured bank loans and debt of DirectTV Holdings LLC and PanAmSat Corp. also remain on CreditWatch positive pending further review of security documentation and appropriate legal opinions to determine if notching above the corporate credit rating is warranted, the agency said.

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