New York, August 19, 2015 -- Moody's Investors Service said that the Federal Communications Commission's ("FCC") decision to deny $3.3 billion in discounts to DISH Network Corporation's ("DISH") two affiliates that won the AWS-3 licenses in January 2015, is clearly an unfavorable development for the company as the resulting significant cash outlays could further weaken the balance sheet and liquidity and pressure DISH's subsidiary, DISH DBS Corporation's (DISH DBS) Ba3 debt ratings. In January 2015, DISH, through its partners SNR Wireless and Northstar Wireless, won AWS-3 spectrum licenses worth $13.3 billion and claimed $3.3 billion in small business discounts, bringing the total purchase price of the licenses to approximately $10 billion which it funded using most of its cash. However, earlier this week, the FCC concluded that DISH's partners are not eligible for the small business discounts as they are essentially controlled by DISH and hence voted to deny the discounts to the company.
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