S&P affirms Maxar, ups revolver

S&P said it assigned a BB- issuer credit rating to Maxar Technologies Inc., in line with the rating previously assigned to Maxar Technologies Ltd., which S&P has withdrawn.

At the same time, S&P said it affirmed its BB- issue-level rating on the $1.15 billion revolver, $250 million term loan A1, $250 million term loan A2 and $2 billion term loan B, which were transferred to Maxar Technologies Inc. The 3 recovery rating is unchanged.

S&P also raised its issue-level rating on the $100 million revolver now at MDA Systems Holdings Ltd. to BB+ from BB- and revised the recovery rating to 1 from 3.

Maxar Technology Ltd. moved its country of incorporation to the U.S. from Canada through an internal restructuring. Maxar Technologies Inc. is the new parent. Also, the company also recently announced that one of its imagery satellites has failed on orbit, likely resulting in $70 million less revenue per year.

“The negative outlook reflects that while we expect credit maxametrics to improve, the satellite failure will likely make it more difficult for the company to improve earnings. It also reflects that this and other operational difficulties could weaken the company's competitive position,” S&P said in a news release.

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