Bulletin: SES S.A. Aims To Use First C-Band Compensation Payment To Contain Leverage

PARIS (S&P Global Ratings) June 19, 2020--S&P Global Ratings today said that C-Band incentive payments should partly compensate SES S.A.'s (BBB-/Stable/A-3) hike in capital expenditure in 2021 (€1.35 billion expected by the company). As a result, leverage should remain below 3.5x in 2021, unlike previously projected. This would give the group greater headroom to maintain a significant financial risk profile. Intelsat's confirmation of its participation in the C-band program gives us sufficient guarantees to incorporate related proceeds in our forecasts for SES (see "SES's 2019 Results And Revised Guidance Confirm Difficulty To Return To Growth," published March 16, 2020, on RatingsDirect). In particular, we understand the group will dedicate the majority of the first incentive payment (for clearing 100 MHz

...June 19, 2020 PARIS (S&P Global Ratings) June 19, 2020--S&P Global Ratings today said that C-Band incentive payments should partly compensate SES S.A.'s (###-/Stable/A-3) hike in capital expenditure in 2021 (1.35 billion expected by the company). As a result, leverage should remain below 3.5x in 2021, unlike previously projected. This would give the group greater headroom to maintain a significant financial risk profile. Intelsat's confirmation of its participation in the C-band program gives us sufficient guarantees to incorporate related proceeds in our forecasts for SES (see "SES's 2019 Results And Revised Guidance Confirm Difficulty To Return To Growth," published March 16, 2020, on RatingsDirect). In particular, we understand the group will dedicate the majority of the first incentive payment (for clearing 100 MHz of spectrum by Dec. 5, 2021), to deleveraging. With about $1 billion of gross proceeds, or $750 million net proceeds, we now forecast S&P Global Ratings-adjusted debt to...

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