Ratings agency Moody’s has again downgraded Eutelsat, and blames its decision on the “disappointing” contribution from Eutelsat’s OneWeb constellation of satellites.
The downgrade, from B2 to Ba3, cites the operational under performance in comparison with Eutelsat’s forecasts for revenues from OneWeb. The report didn’t help Eutelsat’s share price which fell 3.7 per cent on January 21st.
Moody’s said: “This also takes into account Eutelsat’s reduced visibility regarding its ability to return to earnings growth, but also the pressure on its cash flow due to high capital expenditure and the prospect of significant refinancing up to 2027 at a time when borrowing costs are rising significantly”.
However, on the more positive side Eutelsat’s prospects were rated as “stable” which is an improvement on the previous “negative” outlook and adding that it hopes Eutelsat’s operational performance will stabilize in 2026, before a possible turnaround in 2027.