Moody’s assigns A3 to SATS

Moody's Investors Service said it assigned SATS Ltd. an A3 issuer rating and a provisional senior unsecured (P)A3 rating to the multicurrency debt issuance program issued by SATS Treasury Pte. Ltd., which is a wholly-owned financing subsidiary of SATS. Notes and securities issued under the program are guaranteed by SATS. The outlook is stable.

The provisional rating only applies to senior unsecured notes sold under the multicurrency debt issuance program.

"SATS' A3 issuer rating reflects its baseline credit assessment (BCA) of baa3, and three notches of uplift due to Moody's expectation of a high likelihood of extraordinary support from the government of Singapore (Aaa stable) through the government's wholly-owned investment company, Temasek Holdings (Private) Ltd. (Temasek, Aaa stable)," said Rachel Chua, a Moody's vice president and senior analyst.

Earlier this year, SATS completed its €1.3 billion acquisition of Worldwide Flight Services.

The stable outlook reflects the view that SATS will lower its leverage over the next few years, the agency said.

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