S&P lifts Kratos, notes to B

S&P said it raised its corporate credit rating on Kratos Defense & Security Solutions Inc. to B from B-.

The outlook is positive.

At the same time, the agency raised the issue-level rating on the company's secured notes to B from B-. The 4 recovery rating remains, indicating an expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of a payment default.

“The upgrade reflects our expectation that Kratos will use a material portion of the proceeds from its recent equity issuance to reduce its debt, which will materially improve the company's credit metrics,” S&P said in a news release.

© 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.