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Prospect News home > News index > List of issuers K > Headlines for Kratos Defense & Security Solutions, Inc. > News item |
S&P assigns B to Kratos notes
Standard & Poor's said it assigned Kratos Defense & Security Solutions Inc.'s proposed $625 million senior secured notes its B issue-level rating with a recovery rating of 4, indicating an expectation for average (30%-50%) recovery in a payment default scenario.
The company will use the notes to refinance its existing $625 million notes.
The B corporate credit rating and stable outlook are unaffected by the transaction.
S&P said it believes lower interest expense, better cash generation, and the flexibility to pay down debt in the future will more than offset the higher incremental debt. The agency's range of expected key credit ratios is unchanged, with debt to EBITDA of 6x-6.5x over the next year.
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