Peraton Corp. 'B' Rating Outlook Revised To Negative From Stable On Continued Elevated Leverage - S&P Global Ratings’ Credit Research

Peraton Corp. 'B' Rating Outlook Revised To Negative From Stable On Continued Elevated Leverage

Peraton Corp. 'B' Rating Outlook Revised To Negative From Stable On Continued Elevated Leverage - S&P Global Ratings’ Credit Research
Peraton Corp. 'B' Rating Outlook Revised To Negative From Stable On Continued Elevated Leverage
Published Jun 26, 2019
3 pages (1488 words) — Published Jun 26, 2019
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

Herndon, Va.-based government information technology (IT) contractor Peraton Corp. is planning to acquire Solers in a transaction that will result in leverage not declining as we had previously expected. We affirmed our 'B' issuer credit rating on Peraton and revised the outlook to negative from stable. At the same time, we affirmed our 'B' issue-level rating on the company's first-lien debt, including the upsized term loan that will partially fund the transaction. The '3' recovery rating is unchanged. The negative outlook reflects our expectation that leverage will remain high in 2019 due to the transaction and may not decline below 7x in the next 12 months. NEW YORK (S&P Global Ratings) June 26, 2019-- S&P Global Ratings today took the

  
Brief Excerpt:

...June 26, 2019 - Herndon, Va.-based government information technology (IT) contractor Peraton Corp. is planning to acquire Solers in a transaction that will result in leverage not declining as we had previously expected. - We affirmed our 'B' issuer credit rating on Peraton and revised the outlook to negative from stable. - At the same time, we affirmed our 'B' issue-level rating on the company's first-lien debt, including the upsized term loan that will partially fund the transaction. The '3' recovery rating is unchanged. - The negative outlook reflects our expectation that leverage will remain high in 2019 due to the transaction and may not decline below 7x in the next 12 months. NEW YORK (S&P Global Ratings) June 26, 2019-- S&P Global Ratings today took the rating actions listed above. The negative outlook reflects our expectation that Peraton's debt to EBITDA will remain above 7x through 2019. Debt to EBITDA has been elevated since 2017 due to restructuring costs associated with the...

  
Report Type:

Ratings Action

Ticker
1499820D
Issuer
Peraton Corp.
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Peraton Corp. 'B' Rating Outlook Revised To Negative From Stable On Continued Elevated Leverage" Jun 26, 2019. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Peraton-Corp-B-Rating-Outlook-Revised-To-Negative-From-Stable-On-Continued-Elevated-Leverage-2256054>
  
APA:
S&P Global Ratings’ Credit Research. (). Peraton Corp. 'B' Rating Outlook Revised To Negative From Stable On Continued Elevated Leverage Jun 26, 2019. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Peraton-Corp-B-Rating-Outlook-Revised-To-Negative-From-Stable-On-Continued-Elevated-Leverage-2256054>
  
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