Fitch upgrades Intelsat

Fitch Ratings said it upgraded the long-term issuer default ratings of Intelsat SA and Intelsat Jackson Holdings SA (collectively, Intelsat) to BB-.

The agency said it affirmed the BB+/RR1 ratings on Intelsat Jackson Holdings' $500 million super-priority revolving facility and the BB+ rating on its $3 billion of senior notes. However, Fitch lowered the recovery rating to RR2 from RR1. based on the notching framework under Fitch's corporate recovery rating and instrument rating criteria.

“The upgrade reflects a significant decline in EBITDA leverage to the mid-3x range from close to 6x in FY22, following a material debt reduction in 2023. Fitch expects EBITDA leverage to sustain below 3.5x over the rating horizon in line with management's commitment to sustain net leverage below 3x,” the agency said in a press release.

The outlook is stable.

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