Moody's downgrades Maxar

Moody's Investors Service said it downgraded Maxar Technologies Inc.'s corporate family rating to B2 from B1, along with its probability of default rating to B3-PD from B2-PD.

Moody's also said it downgraded instrument ratings applicable to Maxar's $3.75 billion multi-tranche senior secured credit facilities, including the $100 million revolving credit facility tranche domiciled at MDA Systems Holdings Ltd. to B2 (LGD 3) from B1 (LGD 3).

The company's SGL-3 (adequate) speculative grade liquidity rating was affirmed.

The outlook also was changed to stable from negative.

The downgrades reflect a belief that the company's ability to organically de-lever through 2020 is limited because of elevated capital and restructuring expenditures, Moody's said.

The agency said it now expects leverage of debt-to-EBITDA ratio will remain at 6x for most of the next two years.

The ratings reflect the company's sizable and generally stable cash flow from satellite-based imaging services, Moody's said, as well as the technological and market leadership of such services and product diversity and aerospace industry engineering expertise.

The ratings are constrained by elevated debt-to-EBITDA leverage of about 7.2x, the agency said.

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