Bulletin: Peraton Corp.'s Credit Measures Unchanged By Acquisition Of Northrop Grumman Unit

NEW YORK (S&P Global Ratings) Dec. 9, 2020--S&P Global Ratings said today it expects Peraton Corp.'s credit measures to be largely unchanged following its acquisition of Northrop Grumman Corp.'s federal information technology and mission support services business for $3.4 billion. Peraton, an affiliate of Veritas Capital, will increase scale and broaden its ability to serve customers in the defense, intelligence, space, civil, and health sectors through the acquisition. Our negative outlook on our ratings on Peraton incorporates our view that financial leverage is elevated relative to our expectations for the rating. We anticipate the company will finance the acquisition in a balanced manner that does not meaningfully weaken credit measures. We expect to refine our view of the combined companies

...December 9, 2020 NEW YORK (S&P Global Ratings) Dec. 9, 2020--S&P Global Ratings said today it expects Peraton Corp.'s credit measures to be largely unchanged following its acquisition of Northrop Grumman Corp.'s federal information technology and mission support services business for $3.4 billion. Peraton, an affiliate of Veritas Capital, will increase scale and broaden its ability to serve customers in the defense, intelligence, space, civil, and health sectors through the acquisition. Our negative outlook on our ratings on Peraton incorporates our view that financial leverage is elevated relative to our expectations for the rating. We anticipate the company will finance the acquisition in a balanced manner that does not meaningfully weaken credit measures. We expect to refine our view of the combined companies when we have more information about the integration, strategic plans, and financing details....

Bulletin