S&P Global Ratings downgraded Dish DBS Corp. (NASDAQ:DISH) to D from CCC+ on Wednesday after the company filed for Chapter 11 bankruptcy on June 30, 2026. The filing, lodged by the EchoStar Corp. subsidiary, seeks court approval of a prepackaged restructuring plan.
The bankruptcy petition arrived one day before the July 1, 2026 maturity of Dish DBS's $2 billion, 7.75% secured notes. Company management had planned to use proceeds from a planned sale of spectrum rights to AT&T to repay that debt, but delays in closing the AT&T transaction left Dish DBS without the liquidity needed to make the scheduled payment.
Earlier this year, on March 19, 2026, Dish DBS entered into a restructuring support agreement intended to address several issues within the capital structure. That agreement aimed to resolve potential litigation liabilities, repay intercompany loans, amend indentures to enable debt repayments through cash flow sweeps, and require significant debt repayment at par. According to the terms reported at the time, more than 88% of secured and unsecured noteholders signaled support for the restructuring framework.
Following the Chapter 11 filing, S&P lowered all of its ratings on Dish DBS - including the issuer credit rating - to D. Under S&P's rating definitions, the downgrade to D reflects an event of default, consistent with the company seeking legal protection from creditors while it restructures its obligations.
Dish DBS has indicated it expects to pay all allowed claims in full once the pending sale of spectrum rights to AT&T closes. S&P Global Ratings said it plans to reassess the company's new capital structure after the company emerges from bankruptcy, an outcome the company currently expects to occur before the end of the third quarter.
Contextual notes - The filing and the rating action are directly tied to the timing and liquidity consequences of the delayed spectrum sale and the near-term maturity of the secured notes. The previously agreed restructuring support agreement remains part of the formal path laid out to resolve creditor claims and indenture terms, subject to court confirmation.