Dish DBS Corporation -- Moody's affirms DISH Network's Ba3 CFR, changes outlook to stable

New York, December 17, 2015 -- Moody's Investors Service, ("Moody's") affirmed DISH Network Corporation's ("DISH") wholly owned subsidiary, DISH DBS Corporation's ("DISH DBS") Ba3 corporate family rating (CFR), and Ba2-PD probability of default rating (PDR). Moody's has changed DISH DBS' speculative grade liquidity rating (SGL) to SGL-3 from SGL-1. Moody's has also changed DISH's outlook to stable from negative. The stable rating outlook reflects the unlikelihood that the company will increase debt leverage over the near to intermediate-term, and an expectation that DISH's core video business is relatively stable over the near-term. We expect DISH to be able to sustain its rating despite the potential for more debt financed spectrum investment outside of DISH DBS; however, the structure of any such debt issuance and expected source of debt service will dictate the impact on the credit ratings. Although DISH will likely continue in its pursuit of a nationwide wireless broadband strategy, we believe the credit metrics will not be impacted in the next 12-18 months from any related actions. The change in the company's SGL is driven by the sharp reduction in cash resulting from the AWS auction and fine levied by the FCC for the give back of some of its spectrum won in that auction, and the $1.5 billion maturity in February 2016. We believe that the maturity will either utilize most of DISH DBS's and Dish Network's liquidity resources (cash and derivative investments) to repay it in full, unless the company accesses the debt markets to refinance some or all of it.

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