Global scale and superior geographic diversification. Good cash flow stability and visibility. Solid EBITDA margins. Strong track record of operating efficiency. Sound long-term growth prospects. Satellite investment peak, resulting in weak free and discretionary cash flows. High operational risk inherent to the satellite industry. Strategy of expanding into potentially more volatile emerging markets and services. Moderate financial flexibility and some foreign exchange risk. The ratings on Luxembourg-based SES S.A. reflect its business risk profile, which we view as "strong," underpinned by its position as a leading global provider of satellite services and its strong revenue and cash flow visibility, stemming from a contract backlog of €7 billion on June 30, 2011. Standard & Poor's Ratings Services also factors into its...
Companies mentioned in this report are:
- SES S.A.
- SES Global Americas Holdings G.P.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis