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Fitch Assigns 'BB-' Rating to Echostar DBS Corp. Senior Notes |
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CHICAGO, Oct. 2, 2006/Satnews Daily/ — Fitch Ratings has assigned a 'BB-' rating to Echostar DBS Corporation's $500 million offering of 7 percent senior notes due 2013. Echostar said the notes will rank equally with the other debt outstanding at Echostar DBS Corp.
Proceeds from the note offering will be used to fund the early redemption of the company's floating rate senior notes due 2008 on Oct. 1, 2006.
Echostar DBS Corporation is a wholly owned subsidiary of Echostar Communications Corporation (Echostar). The Issuer Default Rating (IDR) for Echostar and Echostar DBS Corporation is 'BB-'. The Rating Outlook is Stable.
Fitch said its ratings incorporate Echostar's lack of revenue and service diversity as well as the increasing business risks connected to Echostar's credit profile stemming from the intense competition for subscriber market share with cable multiple systems operators.
Fitch anticipates that the competitive environment will only intensify as the cable MSOs' voice over Internet protocol telephony service gains scale and the telephone companies continue with the introduction of video service. From Fitch's perspective, the lack of revenue and service diversity, primarily stemming from the limitations inherent with Echostar's satellite infrastructure, weakens the company's competitive position and ability to respond to the changing and riskier operating environment.
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