Fitch upgrades Viasat

Fitch Ratings said it upgraded the long-term issuer default ratings of Viasat, Inc. and Viasat Technologies Ltd. to BB- from B+ following the company's successful launch of Viasat-3 Americas satellite in April and closing of Inmarsat acquisition on May 30.

Fitch affirmed Viasat's senior secured debt at BB+/RR1 but raised the unsecured debt to BB-/RR4 from B+/RR4. The agency concurrently assigned a BB- IDR to Connect BidCo Ltd. (Inmarsat), Connect Finco Sarl and Connect U.S. Finco LLC; and a BB+/RR1 rating to latter's senior secured debt.

“The acquisition, though increasing leverage temporarily, together with the recent and expected satellite launches, positions Viasat as a leading global satellite operator with robust growth opportunities in mobility and government end markets. Fitch expects leverage will trend down to near 4.5x by FY 2025 and the company to turn FCF positive in FY 2026. Fitch expects FCF deficits over the next 18-24 months, as the company funds its satellite build program,” the agency said in a press release.

The outlook is stable.

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