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S&P cuts DISH ratings on subscriber losses, other factors

S&P Global Ratings downgraded DISH Network Corp.'s corporate credit rating to B from B+.

The outlook is negative.

The rating agency also lowered its issue-level ratings on the unsecured debt issued by DISH DBS Corp. to B from B+. The issue rating on DISH's convertible notes was lowered to CCC+ from B-.

The downgrade reflects "continued deterioration in DISH's satellite TV business stemming from heightened competition, shifting consumer preferences, and mature industry conditions that have resulted in weaker credit metrics than previously expected," S&P said Feb. 26.

For the fourth quarter of 2017, DISH reported net income attributable to the company of $1.39 billion, or $2.64 per share, up from net income of $355.0 million, or 73 cents per share. Revenue for the quarter ended Dec. 31, 2017, was $3.48 billion, down 7.2% year over year from $3.75 billion.

Although net pay TV subscribers technically increased by about 39,000 in the fourth quarter of 2017, that figure includes 75,000 reactivations in Puerto Rico and the U.S. Virgin Islands following the devastation of Hurricane Maria. Excluding these reactivations, DISH saw a net decline in video customers.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.