Higher cash interest expectations will be a material headwind to 2023 free operating cash flow (FOCF), and we no longer expect Peraton will improve leverage below 7.5x in fiscal 2023. As a result, S&P Global Ratings lowered the issuer credit rating on Peraton to 'B' from 'B+'. We also lowered the issue-level rating on the company's first-lien term loan to 'B' from 'B+'. We do not rate the second-lien term loans. The stable outlook reflects our expectation that S&P Global Ratings-adjusted EBITDA margins will remain relatively stable as revenue grows from continued government spending on defense initiatives. We continue to expect Peraton will maintain above average industry S&P Global Ratings-adjusted EBITDA margins in 2023 of around 15%-16%. Peraton incurred about
