Moody's rates Speedcast loan Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to Speedcast International Ltd.

Moody's also said it assigned a Ba3 rating to the proposed senior secured term loan facility to be co-borrowed by Speedcast International and Speedcast Communications Inc.

The facility will be unconditionally guaranteed by the co-borrowers and their wholly owned subsidiaries.

The outlook is stable.

The proceeds will be used to refinance Speedcast's existing term loans due in December 2019, Moody's said.

The ratings are supported by Speedcast's leading market position, recurrent contractual revenue from its diversified customer base, good liquidity and expectations for healthy financial leverage and positive free cash flow over the next two years, the agency said.

The ratings are constrained by Speedcast's exposure to cyclicality in its key customer verticals, relatively small scale and potential event risk stemming from its track record of actively pursuing acquisitions, Moody's said.

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