S&P: SRA, loan B, note CCC+

Standard & Poor's said it assigned a preliminary B corporate credit rating to SRA International Inc., along with a preliminary B rating and a preliminary 3 recovery rating on its proposed $975 million first-lien facilities, consisting of a $100 million revolver due 2016 and a $875 million term loan due 2018.

The 3 recovery rating indicates 50% to 70% expected recovery in a default.

The agency also said it assigned a preliminary CCC+ rating and a preliminary 6 recovery rating to the company's proposed $400 million of senior notes due 2019.

The 6 recovery rating indicates 0% to 10% expected recovery in a default.

The outlook is stable.

The proceeds will be used to partially fund the purchase of SRA from existing shareholders in an leveraged buyout.

The company will be able to support its significant debt burden with consistent cash flows, S&P said, and its revenue diversification provides support in a tight budgetary environment for defense spending.

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