Moody’s upgrades Iridium

Moody’s Investors Service said it upgraded Iridium Satellite LLC’s corporate family rating and senior secured credit facility to Ba3 from B1. The agency raised the probability of default rating to Ba3-PD from B1-PD and changed the outlook to stable from positive.

“The upgrade of the CFR reflects better than expected performance through the pandemic and governance considerations, specifically the company’s financial policy to use most free cash flow to aggressively delever until it reaches its company defined leverage target of 2.5x-3.5x net leverage (management’s calculation). We project Moody’s adjusted leverage to fall below 4x and FCF/debt to rise above 15% over the next 12-18 months,” Moody’s said in a press release.

The outlook reflects a forecast revenue will grow to more than $600 million over the next 12-18 months, generating EBITDA of $380 million on margins of over 60% (Moody’s adjusted), the agency said.

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