COMMUNICATIONS: Fitch Downgrades Eutelsat
Mar-06 13:48
Eutelsat SA IDR and SUN rating to BB[N] from BB+[N] on slow OneWeb growth and negative EBITDA, high LEO CapEx likely needed external funding and looming refinancing from 2027. No mention of dynamics around Ukraine, the Italian contract or a shift away from Starlink elsewhere in Europe.
- Eutelsat Communications ratings also downgraded.
- EUR 2bn-2.2bn OneWeb funding (2025-2029); EUR 4.2bn required until 2032. High CapEx to push FCF to negative.
- OneWeb has only managed to grow backlog by EUR 300mn to EUR 1bn in 2024, corresponding to only a fraction of the revs needed for positive EBITDA.
- GEO services face structural challenges with video segment hit by linear TV decline and non-video segments suffering from LEO adoption.
- LEO competition growing; Starlink, Kuiper, Telesat and Chinese constellations.
- Differences with the SES approach could become less pronounced over time with both participating in IRIS2.
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PIPELINE: Corporate Bond Issuance Roundup: Accelerating
Feb-04 13:45
- Date $MM Issuer (Priced *, Launch #)
- 02/04 $3B #EIB WNG 10Y +60a
- 02/04 $1B KFW 4% 2026 TAP SOFR+20
- 02/04 $Benchmark Valero Energy 5Y +115a
- 02/04 $Benchmark BNG Bank 3Y SOFR+37
- 02/04 $Benchmark Foundry JV 6Y, 8Y, 11Y, 12Y, 14Y
- 02/04 $Benchmark GATX 10Y +125a, 2054 Tap +140a
- 02/04 $Benchmark BNY Mellon 6NC5 +85, 6NC5 SOFR
- 02/04 $Benchmark National Fuel Gas 5Y +145a, 10Y +175a
- 02/04 $Benchmark NextEra Capital 30.5NC5.25, 30.5NC10.25
- 02/04 $Benchmark L-Bank 5Y SOFR+47a (2Y SOFR dropped)
EGB SYNDICATION: Croatia 12-year CROATI: Final terms
Feb-04 13:43
- Spread set at MS + 90bps (IPTs were +120bp area, guidance: + 95bp area)
- Size: E2bln (MNI expected E1.5bln)
- Books in excess of E5bln (inc E175mln JLM interest)
- Maturity: 11 February 2037 (12-year)
- Settlement: 11 February 2025 (T+5)
- ISIN: XS2997390153
- Joint Bookrunners: Erste Group, IMI-Intesa Sanpaolo/PBZ, ING (B&D), J.P. Morgan, Morgan Stanley
- Timing: Books subject, allocations / pricing later today
From market source
GOLD: At a new all time record high
Feb-04 13:29
- Not seeing much in terms of move in the Dollar, but Platinum and Gold are seeing some demand here, it is not a session high for Platinum yet, but some investors will be watching Gold, as it tests a fresh all time record high.
- Next immediate resistance is seen at $2845.2 - 1.382 proj of the Nov 14 - Dec 12 - 19 price swing.
- There's some spillovers into Silver, testing the late January high, the highest printed level since 12th December.
- The next resistance in Silver will be $32.338 - High Dec 12 and a key resistance.
