S&P ups Wyle first-priority loan recovery to 2

Standard & Poor's said it raised its recovery rating on Wyle Laboratories Inc.'s first-priority $140 million senior secured bank facility to 2 from 3 and affirmed the company's second-priority $40 million term loan recovery rating of 5, B+ first-priority bank loan rating, B+ corporate credit rating and B- second-priority bank loan rating.

The outlook remains negative.

The recovery rating action is based on a substantial increase in Libor rates since this bank facility was initially rated.

The ratings reflect modest profitability inherent in the government services business, the company's reliance on budgets of key Federal government agencies and high financial leverage, the agency said. These factors partly are offset by a strong niche position providing technical support; test and evaluation services; a broader and deeper business profile resulting from the acquisition of Aeronautics and a predictable revenue stream based on contractual backlogs of business, the agency said..

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