Moody's ups Hughes Network to SGL-2

Moody's Investors Service said it upgraded Hughes Network Systems, LLC's speculative grade liquidity rating to SGL-2 from SGL-3.

The agency also affirmed the B1 corporate family and probability-of-default ratings, Ba1 (LGD1, 2%) senior secured rating and B1 (LGD4, 53%) senior unsecured rating.

The action was prompted by Hughes Communications, Inc.'s sale of 2 million shares for gross proceeds of $100 million. Proceeds will be set aside for acquisition of additional satellite capacity and for general corporate purposes.

Ratings are supported by a strong market position and favorable industry dynamics, the agency said, as well as sizable backlog of enterprise contracts.

The company's small size, vulnerability to technological erosion of its market access advantage and its evolving business profile constrain ratings, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.