Moody's on March 9 assigned a B2 corporate family rating and a B2-PD probability of default rating to Iridium Communications Inc.
The outlook is stable.
The rating agency expects that the company will "sustain good liquidity through the next 12 to 18 months due to its large cash balances," thus giving it an SGL-2 speculative grade liquidity rating.
Iridium's proposed $360 million senior unsecured note offering are rated Caa1.
Moody's said an upgrade is unlikely over the next 12 to 18 months due to forecast high leverage and negative free cash flow. However, upward rating pressure would ensue if Iridium were to sustainably generate free cash flow and debt/EBITDA approached 4.5x.
