S&P gives Speedcast loan BB-

S&P said it assigned its BB- issue rating to the $425 million secured first-lien term loan B issued by Speedcast Communications Inc. (BB-/stable) and guaranteed by Speedcast International Ltd. (BB-/stable).

The 3 recovery rating indicates an expectation for meaningful recovery of 50% in the event of a payment default.

The issue rating on the loan is in line with the issuer credit rating on Speedcast International, which reflects an assessment of the company's leading position in the niche remote satellite services market, the industry's modest barriers to entry and variable end-market demand, S&P said.

Other rating factors include the company's capital-light operating model, limited track record in its current business configuration, likelihood of ongoing corporate activity and supportive financial policies at the BB- level, the agency said.

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