Eutelsat: Moody's downgrades outlook
(CercleFinance.com) - On Tuesday Moody's Investors Service downgraded its outlook for Eutelsat from stable to negative.
The rating agency also confirmed Eutelsat's long-term Baa3 rating and Ba1 rating on Eutelsat Communications.
"The change in outlook to negative from stable reflects the difficult
market conditions for Eutelsat and other global satellite operators with continued revenue contraction due to price erosion in the Fixed Data segment, and some pressure on volumes in the Video and Government
Services segments," says Ernesto Bisagno, a Moody's Vice President -
Senior Credit Officer and lead analyst for Eutelsat.
"The rating affirmation takes into account Moody's expectations that the company can maintain high margins supporting cash flow generation,
partially offsetting the pressure on revenues," he added.
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