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Moody’s upgrades Eutelsat’s debt rating

December 3, 2025

Moody’s Ratings has upgraded Eutelsat’s long-term debt to Ba3 from B2, the rating agency has announced.

The upgrade follows Eutelsat’s announcement of a €670 million rights issue as part of its €1.5 billion capital raise. The company had already completed a reserved issuance on November 21st, which raised €828 million at €4.00 per share.

The rights offering, priced at €1.35 per share, will run until December 9th, with approximately 71 per cent already committed by core shareholders. Following this two-step capital increase, the French State will become Eutelsat’s largest shareholder with a 29.65 per cent stake.

“The rating action reflects that Eutelsat Communications SA is now considered a Government-related Issuer based on its 29.65 per cent ownership by the Government of France, which resulted in a one-notch uplift,” said Ernesto Bisagno, Moody’s VP and lead analyst for Eutelsat.

The upgrade also reflects improved credit metrics following the capital increase, with reported net debt to EBITDA expected to decline to around 2.5x in fiscal year 2026 from 3.9x in fiscal year 2025.

Moody’s also upgraded to Ba3 from B1 the ratings on senior unsecured debt instruments issued by Eutelsat SA, including €600 million notes maturing in July 2027, €600 million notes due in October 2028, and €600 million notes due in April 2029.

The company has reiterated its long-term guidance with total revenue expected to increase to €1.5-1.7 billion by fiscal year 2029, representing a compound annual growth rate of around 6.6 per cent. Eutelsat also expects its EBITDA margin to improve to at least 60 per cent, up from 54.4 per cent in fiscal 2025.

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