Moody’s cuts DISH DBS notes

Moody's Investors Service said it downgraded DISH Network Corp.’s (DISH) wholly owned subsidiary, DISH DBS Corp.’s notes to B1 from Ba3 and assigned it a B1 corporate family rating and a Ba3-PD probability of default rating.

The agency also confirmed DISH's Ba3 convertible notes ratings and corporate family rating, and Ba2-PD probability of default rating.

Moody's upgraded DISH's speculative grade liquidity rating to SGL-2 and changed the outlook to stable. This concludes the review for downgrade initiated on Feb. 21.

“The downgrade was a result of the weakening subscriber and operating performance at DISH DBS due to secular pressure in the traditional bundled US pay TV industry broadly,” Moody’s said in a news release.

“We believe that DISH DBS is in harvest mode now and will focus on retention and cost savings rather than growth, and using strong free cash flows still being generated to use for debt repayment to mitigate declining subscriber and EBITDA, and to provide liquidity to DISH overall.”

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