Dish DBS Corporation -- Moody's assigns a Ba3 rating to DISH Network's new $1.25 billion senior unsecured notes

New York, November 05, 2014 -- Moody's Investors Service assigned a Ba3 (LGD4 - 67%) rating to DISH Network Corporation's (DISH) proposed $1.25 billion senior unsecured notes maturing in 2024. The new notes will be issued at the company's wholly-owned subsidiary, DISH DBS Corporation (DISH DBS), and will be pari pasu with DISH DBS's existing senior unsecured notes, which are guaranteed only by the US pay-TV operating company subsidiaries. The company plans to utilize the net proceeds from the offering for general corporate purposes, including replenishing cash used for repayment of $900 million 6.625% Senior Notes, which matured in October 2014. Proceeds from the debt offering may also be used to prefund repayment of the company's $650 million 7.75% Senior Notes due in 2015. We believe DISH is taking advantage of the low interest rate environment to lock-in long-term financing at attractive terms and bolster its liquidity position. The transaction is largely neutral from a ratings perspective given that debt-to-EBITDA leverage will not change, but over the long-term, savings from lower interest expense should positively impact the company's operating cash flows. As of 09/30/2014, DISH DBS's leverage was roughly 4.7x (incorporating Moody's standard adjustments) and the company had over $8 billion of cash and marketable securities on its balance sheet. The rating outlook for DISH DBS is negative.

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