Bulletin: DirecTV Ratings Remain On CreditWatch Negative Following Dish Merger Termination

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 25, 2024—DirecTV Entertainment Holdings LLC has terminated its planned acquisition of satellite-TV provider Dish DBS Corp. after Dish DBS lenders rejected a subpar debt exchange that was a requirement for the transaction to occur. Separately, TPG will still purchase AT&T?s remaining 70% stake in DirecTV, which we expect will close in the second half of 2025. We still intend to lower all ratings one notch, including the issuer credit rating to ?B+? from ?BB-?, once TPG takes 100% ownership of DirecTV as some governance protections are lost. TPG will have full control over financial policy and capital allocation decisions, which increase the risk of re-leveraging, in

...November 25, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 25, 2024--DirecTV Entertainment Holdings LLC has terminated its planned acquisition of satellite-TV provider Dish DBS Corp. after Dish DBS lenders rejected a subpar debt exchange that was a requirement for the transaction to occur. Separately, TPG will still purchase AT&T's remaining 70% stake in DirecTV, which we expect will close in the second half of 2025. We still intend to lower all ratings one notch, including the issuer credit rating to `B+' from `##-', once TPG takes 100% ownership of DirecTV as some governance protections are lost. TPG will have full control over financial policy and capital allocation decisions, which increase the risk of re-leveraging, in our view. Previously, AT&T had split representation on the board of directors and material actions, such as a leveraging dividend, required the consent of AT&T Inc. To support the change in ownership structure, DTV will be paying...

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