Bank: SES outperforming
December 19, 2025
French investment bank, Exane BNP Paribas, has initiated coverage of Europe’s two giant satellite operators SES and Eutelsat. The news comes as Moody’s downgraded SES (to ba2 from ba1) on its Baseline Credit Assessment, and the ratings agency withdrew its corporate rating and changed its overview from “Stable to Negative”.
Exane ranks SES as ‘Outperform’ and Eutelsat as ‘Neutral’ in their report, saying that “European satellite operators could benefit from the geopolitical environment despite challenges in video business.”
The bank says SES’s multi-orbit strategy, exposure to the networks market, upcoming C-band spectrum auctions in the US by 2027 and Intelsat synergies outweigh video weakness and competition.
Eutelsat, on the other hand, still has sizeable exposure to the challenged video segment, according to the bank. Still, it notes “Eutelsat has multi-orbit operations and is well placed to benefit from the space policy and sovereignty theme in Europe.”
As to the Moody’s downgrade, which could affect SES future borrowings, Moody’s stated: “The downgrade reflects the material deviation in operating performance relative to our previous expectations when we changed the outlook on the rating to negative back in February,” Ernesto Bisagno, Moody’s lead analyst for SES commented. “This deviation has caused a deterioration in credit metrics to levels that are no longer commensurate with the previous Baa3 rating.”
SES responded with a statement, saying: “Continues execute on its strategy with a clear plan to strengthen its key credit metrics over time.”
SES stressed the Moody’s rating action does not change its ability to operate its business, and the action is not expected to have a material impact on the interest payable under its existing debt facilities.
“Our priority is to convert our strong strategic position into continued durable cash generation and stronger credit metrics,” said CFO Lisa Pataki. “We also have a clear view of the multiple cash generating levers available to us that we believe can substantially support and accelerate our de-leveraging plan. We will use these levers in a disciplined way and keep investors informed as we deliver on our strategic plan.”
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