S&P lowers DISH to negative

S&P said it affirmed all of the ratings on DISH Network Corp., including the B+ corporate credit rating.

The agency also said it revised the outlook to negative from stable.

The outlook revision reflects the announced award of $6.2 billion worth of spectrum licenses in the recently completed broadcast incentive auction, which significantly exceeded expectations and increases the likelihood that leverage could rise above the downgrade trigger of 6x over the next year, S&P explained.

Without the additional spectrum purchases, the agency said it believes DISH has the ability to maintain leverage at pro forma levels in the 5.5x to 5.7x range by using discretionary cash to reduce debt, offsetting the impact of lower earnings on credit ratios, the agency said.

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