SES: Moody's places rating on negative watch

(CercleFinance.com) - SES shares fell on the Paris Bourse on Wednesday morning, following the decision by Moody's to place the satellite operator's debt rating on negative watch.


Moody's justified its decision by expressing concern about the operating performance and debt reduction capacity of the group and its new subsidiary Intelsat, at a time when the sector is facing increased competition and innovation.

In a statement issued this morning, SES commented on the agency's decision, indicating that its full-year results for 2024 should come in above target.

Sales should therefore be at the top end of E1.94bn to E2bn previously communicated.

Adjusted EBITDA should exceed the target range of E950m to E1bn.

With the Intelsat acquisition expected to be completed in H2 2025, SES said it expected to confirm all the financial forecasts it provided last year, when the deal was made official.

At that time, the company stated that it was targeting average annual sales growth of between 0% and 5% ('low- to mid-single digit) over the period 2024-2028, as well as an increase of around 5% in adjusted Ebitda ('mid-single digit') in the intervening period.

At 9:30am, SES was the second worst performer on the SBF 120 index, down 2.9%, with Moody's negative comments outweighing these figures.

The group is set to publish its annual results on Thursday 26 February.

On the business front, SES announced this morning that the US telecommunications group Viasat had deployed its O3b mPower MEO system for an energy customer operating an offshore vessel in the Asia-Pacific region (APAC).


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