S&P cuts Kratos Defense

Standard & Poor's said it lowered its corporate credit rating on Kratos Defense & Security Solutions Inc. to B from B+.

At the same time, the agency said it lowered the issue rating on the unsecured notes one notch to B from B+. The recovery rating remains 4, indicating an expectation for average recovery following a payment default.

"Kratos' credit metrics have improved less than we expected following two large debt-financed acquisitions in 2011 because earnings were lower than we had forecast," said S&P credit analyst Chris Mooney in a news release.

"We believe the company will eventually receive some previously delayed orders in the coming months, but overall demand will be less than we originally anticipated for this year because of shifting industry conditions," he added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.