FCC’s Denial of Dish’s AWS-3 Discounts Could Hit Company’s Credit Ratings, Moody’s Says
The FCC denial of Dish Network’s $3.3 billion in AWS-3 auction bidding discounts “is clearly an unfavorable development for the company as the resulting significant cash outlays could further weaken the balance sheet and liquidity” and force “negative credit rating…
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actions,” Moody’s said Wednesday in a research note. Much depends on how Dish finances the $3.3 billion obligation and manages its “credit metrics,” Moody’s said. Paying back the $3.3 billion in discounts would leave Dish with “less to work with,” possibly imperiling the company’s mergers and acquisitions activities, Dish CEO Charlie Ergen said on an Aug. 5 earnings call (see 1508050042).