S&P: Hughes Network view positive

Standard & Poor's said it revised the outlook on Hughes Network Systems LLC to positive from stable and affirmed the B corporate credit rating.

The outlook change reflects the successful public-equity offering by parent Hughes Communications Inc. on May 28. As a result, the agency said it expects leverage to fall to about mid-4 times by the end of 2008 from 5.2 times as of March 31.

Ratings reflect a highly leveraged financial profile, especially when adjusted for operating and transponder leases, the agency said. It also reflects uncertain long-term growth prospects for the company's consumer and small business broadband service.

Tempering factors include Hughes' leading position and some revenue stability with sizable backlog from three- to five-year contracts with large enterprise customers, S&P noted.

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