S&P rates SAIC notes A-

Standard & Poor's said it assigned SAIC Inc.'s proposed $750 million senior unsecured notes an A- issue-level rating. The notes are expected to be issued in two tranches due 2020 and 2040.

The proceeds will be used for general corporate purposes, including about $300 million to repurchase common stock.

The notes are guaranteed by wholly owned Science Applications International Corp., and will rank equally with the senior unsecured debt of the subsidiary guarantor, S&P said.

The proposed debt transaction does not affect the company's A- long-term corporate credit rating on or its stable outlook, the agency said.

The ratings reflect an expectation that the company's strong business profile and sizable recurring revenue stream will support consistent profitability and cash flow, S&P said.

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