Fitch assigns SES BBB, notes BB+

Fitch Ratings said it assigned SES SA a long-term issuer default rating and senior unsecured rating of BBB. Fitch also gave SES' subordinated hybrid securities a BB+ rating. The senior unsecured rating also applies to SES Global Americas Holdings GP. The outlook is stable.

“SES’ rating reflects the company's leading position in the global satellite sector, which is supported by its prime position in the European video segment and multi-orbit, global satellite network infrastructure. SES has strong underlying free cash flow (FCF) generation that enables it to manage peaks in capex investment cycles. The easing of this investment peak in the next two to three years, combined with an inflection in the current decline of EBITDA, will build organic deleveraging capacity and financial flexibility,” Fitch said in a press release.

Proceeds of about $4 billion from the sale of C-band spectrum in the U.S. will give the company further, significant discretionary capacity to manage its financial profile.

“The proceeds will also provide optionality for M&A, shareholder returns and the management of medium-to-long-term operational risks relating to potential new competition from low-earth orbit (LEO) constellations and the substitutional effects from terrestrial fiber deployments. The optionality and improving financial flexibility are key drivers of SES' IDR and stable outlook,” the agency said.

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