S&P affirms Kratos

Standard & Poor's said it affirmed Kratos Defense & Security Solutions Inc.'s B+ corporate credit rating and removed the company's ratings from CreditWatch, where they were placed with negative implications on Feb. 9.

The outlook is stable.

S&P also affirmed Kratos' senior secured notes due 2017, following the add-on of $250 million to the issuance.

The ratings on Kratos reflect the company's weak credit protection measures arising from high debt leverage, modest size compared with some competitors, exposure to possible changes in defense spending priorities and a fairly active acquisition program, the agency said.

The ratings consider high levels of defense spending, along with good programs and customer diversity, the agency added.

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