S&P lowers Maxar Technologies

S&P said it lowered its issuer credit rating on Maxar Technologies Ltd. to BB- from BB and revised the outlook to stable.

At the same time, S&P lowered the issue-level rating to BB- from BB on the company's first-lien credit facilities, which comprise a $1.15 billion revolver due 2021 (can only be drawn in U.S. dollars), a $100 million operating facility due 2021 (can be drawn in U.S. dollars or Canadian dollars), a $250 million term loan A1 due 2020, a $250 million term loan A2 due 2021, and a $2 billion term loan B due 2024.

The 3 recovery rating is unchanged, indicating an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

“The downgrade reflects our belief that the geostationary communications satellite market will not see meaningful recovery for at least the next few years, which will result in Maxar's earnings and cash flow being below our previous expectations in 2019 and 2020,” S&P said in a news release.

“We now expect Maxar's debt-to-EBITDA to be in the 4.2x-4.8x range in 2019, worse than our previous expectations of around 4x.”

© 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.