PARIS (Standard&Poor's) Dec. 16, 2005--Standard&Poor's Ratings Services said today that it placed its 'BBB+/A-2' long- and short-term corporate credit ratings on Luxembourg-based worldwide leading satellite company SES Global S.A. and related entities on CreditWatch with negative implications, following the company's announcement that it has agreed to buy Netherlands-based competitor New Skies Satellites B.V. (B+/Stable/--) for about $1.2 billion. "The CreditWatch placement reflects our view that the debt-funded acquisition will materially increase SES' leverage from 2006, which, combined with significant shareholder returns over the next few years, may result in the medium term in discretionary cash flow generation and lease-adjusted credit measures that are not commensurate with 'BBB+' rating," said Standard&Poor's credit analyst Melvyn Cooke.
