S&P affirms Speedcast

S&P said it affirmed its BB- issuer long-term credit rating on Speedcast International Ltd. The outlook is stable.

At the same time, S&P affirmed the BB- issue rating on the secured first-lien $425 million term loan B issued by Speedcast's subsidiary SpeedCast Communications Inc. S&P also revised the recovery rating on the loan to 4 (45%) from 3 (50%) to reflect the upsized amount of the loan to $600 million.

“We affirmed the ratings on Speedcast to reflect our view that the company can debt fund its proposed acquisition of Globecomm Systems Inc. within the BB- rating level. However, the acquisition will leave Speedcast with limited headroom over the next 12 months to withstand further deterioration in market conditions, which have worsened over the past six months ended June 30, 2018,” S&P said in a news release.

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