Satellite operator SES has bought back €100 million of its perpetual bonds of which €625 million were in issue.SES’s bonds dropped sharply in mid-January after the credit desk at investment bank BNP Paribas published a note recommending investors sell the debt.The BNP Paribas report suggested that competition from new(ish) satellite players such as Elon Musk and Jeff Bezos, plus their support from the new US administration, would pose a tougher environment for SES, said the bank’s note.The buyback represented “a smart move to limit the volatility in its notes, making use of its cash generation,” said ING Groep NV analyst Jan Frederik Slijkerman in a note to clients on January 24th.According to a report in the Luxembourg Times newspaper, ING expects SES to maintain its investment-grade rating, which is currently at Baa3 from Moody’s Ratings and BBB from Fitch Ratings.SES’s share price on January 24th recovered some 1.37 per cent to €3.10 per share, although this is still a low value compared with the typical €6.50 a year ago.
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