Bermuda-based satellite service operator Intelsat Ltd. has seen its corporate credit rating cut from 'B+' to 'B' by Standard & Poor's Ratings Services (S&P), with a stable outlook.

The downgrade reflects the significant increase in leverage resulting from the buyout of the company by an investor group led by BC Partners, S&P said.

The ratings on Intelsat reflect a very highly leveraged financial profile that allows for little financial flexibility over the medium term and overwhelms very attractive business characteristics, the ratings agency said.

"It is only the fundamentally sound business profile that enables Intelsat to warrant the 'B' corporate credit rating in light of this excessive leverage," S&P said.

The ratings agency also cut the rating on the company's senior secured credit facility to 'BB-'.