FCC’s Denial of Dish’s AWS-3 Discounts Could Hit Company’s Credit Ratings, Moody’s Says

The FCC denial of Dish Network’s $3.3 billion in AWS-3 auction bidding discounts “is clearly an unfavorable development for the company as the resulting significant cash outlays could further weaken the balance sheet and liquidity” and force “negative credit rating actions,” Moody’s said Wednesday in a research note. Much depends on how Dish finances the $3.3 billion obligation and manages its “credit metrics,” Moody’s said. Paying back the $3.3 billion in discounts would leave Dish with “less to work with,” possibly imperiling the company’s mergers and acquisitions activities, Dish CEO Charlie Ergen said on an Aug. 5 earnings call (see 1508050042).