S&P affirms SI

Standard & Poor's said it affirmed its B+ corporate credit rating and positive outlook on SI International Inc.

At the same time, S&P said it affirmed its B+ bank loan and 3 recovery ratings on SI's $155 million senior secured bank facility, including the proposed $25 million add-on term loan.

The agency said that the ratings affirmation follows the company's announcement that it will acquire Logtec Inc. for $59 million in cash.

According to S&P, the ratings reflect SI's relatively modest position in the highly competitive and consolidating government IT services market, dependence on the federal government's spending initiatives and acquisitive growth strategy.

A predictable revenue stream, based on long-term contracts and the expectation that government-related services business will remain solid over the intermediate term, are partial offsets to these factors, the agency added.

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