Moody's rates SI International loans B1

Moody's Investors Service said it assigned a B1 rating to the proposed $100 million revolving credit facility and $50 million term loan facility of SI International Inc. In addition, Moody's assigned a senior implied rating of B1 and an SGL rating of SGL-2. The outlook is stable.

Proceeds from the $100 million term loan are expected to be used to acquire Shenandoah Electronic Intelligence Inc. for about $75 million in cash, refinance existing debt and pay fees and expenses. The revolver is expected to be unused at closing.

Moody's said the ratings reflect risks related to the company's rapid growth through acquisitions in 2004 and 2005, the company's exposure to potential changes in government spending policies, significant contract re-competes in the next two years, the company's small revenue base and limited financial resources compared to its larger industry competitors and strong competition in its markets which may intensify due to the entrance of new or larger competitors.

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