Moody's rates Hughes Network notes B1

Moody's Investors Service said it rated Hughes Network Systems LLC's $150 million senior unsecured mirror note offering B1 (LGD4, 53%) and affirmed the B1 corporate family and probability-of-default ratings, along with the company's SGL-2 liquidity rating.

The outlook remains stable.

With the new junior-ranking senior unsecured notes providing greater loss absorption in the overall waterfall of debts, the rating for the company's prior-ranking $50 million senior secured revolving credit facility was raised to Baa3 (LGD2, 11%) from Ba1 (LGD1, 2%).

The corporate family rating reflects the company's strong market position and favorable industry dynamics, the agency said.

Ratings are constrained by the unproven viability of the business model in light of the threat from evolving technologies as well as heightened execution risks, the agency noted.

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