S&P raises Wyle

Standard & Poor's said it raised the corporate credit rating on Wyle Holdings Inc. to B+ from B following the exchange of all outstanding holding company preferred stock for common stock.

The outlook is stable.

At the same time, the agency said it raised the issue-level rating on the company's first-lien senior secured facilities to BB from BB-, while leaving the recovery ratings on this debt unchanged at 1.

Given the accruing dividend and liquidation preference features in the preferred instrument, S&P said it treated the preferred stock as debt for analytical purposes. Therefore, the exchange into common effectively reduces adjusted leverage and provides greater credit protection measures.

"The ratings reflect modest profitability inherent in the government services business, budget reliance on key U.S. federal government agencies, and a highly leveraged financial profile," said credit analyst Jennifer Pepper.

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