Research Update: Viasat 'BB-' Rating Affirmed, Outlook Stable; Connect Bidco Upgraded To 'BB-' From 'B+', Off CreditWatch Positive

U.S.-based satellite provider Viasat recently closed its acquisition of U.K.-based Inmarsat (including $3.7 billion of assumed debt, $550 million cash, and 46 million shares of Viasat) resulting in S&P Global Ratings-adjusted pro forma leverage of about 4.8x. We believe the strategic benefits of the acquisition offset the impact from increasing competition across all major business segments and higher leverage. We affirmed our 'BB-' issuer credit rating on Viasat. We raised our issuer credit rating on Connect Bidco Ltd. (Inmarsat) to 'BB-' from 'B+' and removed it from CreditWatch with positive implications, where it was placed on Feb. 16, 2022. The stable outlook reflects our expectation for meaningful pro forma EBITDA growth to drive deleveraging over time. However, an upgrade is

...- U.S.-based satellite provider Viasat recently closed its acquisition of U.K.-based Inmarsat (including $3.7 billion of assumed debt, $550 million cash, and 46 million shares of Viasat) resulting in S&P Global Ratings-adjusted pro forma leverage of about 4.8x. - We believe the strategic benefits of the acquisition offset the impact from increasing competition across all major business segments and higher leverage. - We affirmed our '##-' issuer credit rating on Viasat. - We raised our issuer credit rating on Connect Bidco Ltd. (Inmarsat) to '##-' from 'B+' and removed it from CreditWatch with positive implications, where it was placed on Feb. 16, 2022. - The stable outlook reflects our expectation for meaningful pro forma EBITDA growth to drive deleveraging over time. However, an upgrade is unlikely over the next year due to cash flow deficits through at least 2024 stemming from elevated capital spending....

Research Update