In conjunction with Standard & Poor's Ratings Services' review of the company, we are reviewing our recovery and issue-level debt ratings on Mexico's satellite company, Satelites Mexicanos S.A. de C.V. (Satmex). We believe the company would reorganize in the event of a default. Our simulated default scenario contemplates a default in 2015, as a result of heightened competition, customers switching to other satellite providers, and pricing pressures. Our estimated enterprise value yields an expectation of a meaningful (50% to 70%) recovery for secured lenders in the event of a payment default. Satmex is the issuer of the rated senior secured notes. The senior notes due 2017 are senior secured obligations, ranking senior in right of payment to all existing and...
Companies mentioned in this report are: Satelites Mexicanos, S.A. de C.V.
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