Research Update: Amentum Holdings LLC Outlook Revised To Negative On Sustained High Leverage; Ratings Affirmed - S&P Global Ratings’ Credit Research

Research Update: Amentum Holdings LLC Outlook Revised To Negative On Sustained High Leverage; Ratings Affirmed

Research Update: Amentum Holdings LLC Outlook Revised To Negative On Sustained High Leverage; Ratings Affirmed - S&P Global Ratings’ Credit Research
Research Update: Amentum Holdings LLC Outlook Revised To Negative On Sustained High Leverage; Ratings Affirmed
Published Feb 17, 2023
7 pages (2973 words) — Published Feb 17, 2023
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Amentum Holdings LLC experienced significant contract wind-downs in fiscal 2022 related to the United States' exit from Afghanistan. The larger-than-expected revenue and EBITDA impact from these contract wind-downs resulted in S&P Global Ratings-adjusted debt to EBITDA at 7x for Amentum's fiscal year ending September 2022. We revised our outlook on Amentum to negative from stable and affirmed the 'B' issuer credit rating and 'B' senior secured issue-level ratings. We do not rate the second lien debt. The negative outlook reflects Amentum's adjusted debt to EBITDA of 7x and the potential risk that this may rise above 7x and remain there over the next 12 months. Pro forma for the full year contributions of the acquisitions of DynCorp (in fiscal 2021)

  
Brief Excerpt:

...- Amentum Holdings LLC experienced significant contract wind-downs in fiscal 2022 related to the United States' exit from Afghanistan. - The larger-than-expected revenue and EBITDA impact from these contract wind-downs resulted in S&P Global Ratings-adjusted debt to EBITDA at 7x for Amentum's fiscal year ending September 2022. - We revised our outlook on Amentum to negative from stable and affirmed the 'B' issuer credit rating and 'B' senior secured issue-level ratings. We do not rate the second lien debt. - The negative outlook reflects Amentum's adjusted debt to EBITDA of 7x and the potential risk that this may rise above 7x and remain there over the next 12 months....

  
Report Type:

Research Update

Ticker
1833328D
Issuer
Amentum Holdings LLC
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Amentum Holdings LLC Outlook Revised To Negative On Sustained High Leverage; Ratings Affirmed" Feb 17, 2023. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Amentum-Holdings-LLC-Outlook-Revised-To-Negative-On-Sustained-High-Leverage-Ratings-Affirmed-2950649>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Amentum Holdings LLC Outlook Revised To Negative On Sustained High Leverage; Ratings Affirmed Feb 17, 2023. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Amentum-Holdings-LLC-Outlook-Revised-To-Negative-On-Sustained-High-Leverage-Ratings-Affirmed-2950649>
  
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