TAMPA, Fla. — SES moved to reassure investors about its financial stability Feb. 18 after Moody’s downgraded the Luxembourg-based satellite operator’s outlook from stable to negative.
The ratings agency affirmed SES’s Baa3 long-term issuer rating — one notch above non-investment grade — while citing competitive pressures and uncertainty around future revenue streams.
In response, SES issued a financial update ahead of its earnings announcement next week, stating that full-year 2024 results are expected to exceed expectations, with revenue at the upper end of its forecasted 1.94-2 billion euro ($2-2.1 billion) range.
Adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, is also set to surpass its 950 million to 1 billion euro outlook.
SES said its planned $3.1 billion acquisition of Intelsat remains on track to close in the second half of 2025, positioning the combined company for low- to mid-single-digit annual revenue growth from 2024 to 2028, mid-single-digit EBITDA growth, and strong free cash flow generation.
“SES remains committed to maintaining Investment Grade metrics,” the company stated.
Market challenges
Despite these growth projections, Moody’s cited the Intelsat acquisition in its outlook downgrade, pointing to the expected rise in net debt to finance the deal as a factor weakening SES’s financial profile.
“The outlook change to negative reflects the increased risk in terms of operating performance and deleveraging path of the combined SES and Intelsat entity,” Moody’s Ratings vice president Ernesto Bisagno said, “owing to growing competition and higher innovation risk in the satellite industry.”
However, Moody’s noted that deleveraging could begin in 2026 if the merged group achieves synergies and earnings growth. A potential sale of additional C-band spectrum assets could also accelerate this process, though the timing and potential proceeds remain uncertain.
SES, which operates a fleet of…
Read the full article here