Viasat Inc. Downgraded To 'B+' On Revised Earnings And Cash Flow Projections; Outlook Negative - S&P Global Ratings’ Credit Research

Viasat Inc. Downgraded To 'B+' On Revised Earnings And Cash Flow Projections; Outlook Negative

Viasat Inc. Downgraded To 'B+' On Revised Earnings And Cash Flow Projections; Outlook Negative - S&P Global Ratings’ Credit Research
Viasat Inc. Downgraded To 'B+' On Revised Earnings And Cash Flow Projections; Outlook Negative
Published Nov 14, 2023
5 pages (2657 words) — Published Nov 14, 2023
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Abstract:

We have lowered our long-term earnings and operating cash flow projections for U.S.-based satellite operator Viasat Inc. given that more than 90% of the planned throughput on the Viasat-3 F1 satellite will be lost. We continue to project positive free operating cash flow (FOCF) by fiscal 2026 (ended March 31)6 but believe the path toward achieving FOCF to debt greater than 5% is more uncertain. As a result, we have lowered all ratings on Viasat Inc. by one notch, including our issuer credit rating to 'B+', and removed them from CreditWatch negative, where we placed it on Oct. 4, 2023. The negative outlook incorporates uncertainty around achieving sustainably positive FOCF in 2026 and beyond due to execution risk associated with

  
Brief Excerpt:

...November 14, 2023 - We have lowered our long-term earnings and operating cash flow projections for U.S.-based satellite operator Viasat Inc. given that more than 90% of the planned throughput on the Viasat-3 F1 satellite will be lost. - We continue to project positive free operating cash flow (FOCF) by fiscal 2026 (ended March 31)6 but believe the path toward achieving FOCF to debt greater than 5% is more uncertain. - As a result, we have lowered all ratings on Viasat Inc. by one notch, including our issuer credit rating to 'B+', and removed them from CreditWatch negative, where we placed it on Oct. 4, 2023. - The negative outlook incorporates uncertainty around achieving sustainably positive FOCF in 2026 and beyond due to execution risk associated with successfully launching Viasat-3 F2 and F3 satellites, the increasingly competitive landscape, and elevated interest rates. NEW YORK (S&P Global Ratings) Nov. 14, 2023--S&P Global Ratings today took the rating actions listed above. Earnings...

  
Report Type:

Ratings Action

Issuer
Viasat Inc.
GICS
Communications Equipment (45201020)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Viasat Inc. Downgraded To 'B+' On Revised Earnings And Cash Flow Projections; Outlook Negative" Nov 14, 2023. Alacra Store. May 16, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Viasat-Inc-Downgraded-To-B-On-Revised-Earnings-And-Cash-Flow-Projections-Outlook-Negative-3089155>
  
APA:
S&P Global Ratings’ Credit Research. (). Viasat Inc. Downgraded To 'B+' On Revised Earnings And Cash Flow Projections; Outlook Negative Nov 14, 2023. New York, NY: Alacra Store. Retrieved May 16, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Viasat-Inc-Downgraded-To-B-On-Revised-Earnings-And-Cash-Flow-Projections-Outlook-Negative-3089155>
  
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