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. On June 26, 2019, 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. The negative outlook reflects our expectation that Peraton's debt to
