S&P drops Artel

Standard & Poor's said it lowered its corporate credit rating on Artel LLC to B- from B.

The outlook is negative.

At the same time, the agency said it lowered its issue-level rating to B from B+ on the company's first-lien senior secured credit facilities, which include a $100 million term loan and a $15 million revolving credit facility, both due 2017.

The recovery rating remains at 2.

"The downgrade reflects its expectation for low covenant headroom over the near term due to delays in task order awards under the company's Future COMSATCOM Services Acquisition contract," said credit analyst Christian Frank.

"The negative outlook indicates that we could lower the rating if the company does not win enough new business to be positioned to remain compliant with its interest coverage covenant in the December 2013 quarter."

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