S&P downgrades Global Eagle

S&P said it lowered all of the ratings on Global Eagle Entertainment Inc. two notches to CCC.

The downgrade reflects a view that Global Eagle may not be able to meet its financial obligations over the next year if adverse business and financial conditions persist, S&P said.

The company's liquidity position has weakened following a free operating cash flow drain of about $115 million in 2018, compared with previous expectations of negative $50 million, the agency said.

The agency said it does expect the company to improve earnings with the realization of cost synergies, lower audit fees and revenue growth.

S&P also said it believes significant uncertainty exists around the level of free operating cash flow in 2019.

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