Embattled satellite broadband provider Speedcast has had its debt downgraded by S&P which said its “capital structure is unsustainable” and flagged that proposed asset sales might not be enough to alleviate liquidity concerns.
The ratings agency downgraded Speedcast’s debt to a CCC rating on Monday after Speedcast lowered its earnings forecast last week sparking fears that it might not be the end of the bad news relating to the 2019 financial year.
“We believe that Speedcast’s aggressive growth strategy, cost cutting, and failure to effectively integrate prior acquisitions have eroded the quality of its earnings and cash generation,” said S&P.
“In our view, Speedcast’s capital structure is unsustainable.”
The S&P news came just hours after Speedcast has extended its suspension from trading until February 27, or when it release the board’s review of “all elements” of the preliminary FY19 downgrade which lead to the departure of chief executive PJ Beylier.