Moody’s rates Computer Sciences CFR, debt Ba2

Moody's Investors Service said it assigned initial ratings to Computer Sciences Government Services, Inc., including a corporate family rating of Ba2 and a senior secured rating of Ba2.

The assigned ratings are based on Computer Sciences’ planned spinoff from Computer Sciences Corp. (Baa2 stable), and Computer Sciences’ planned merger with SRA International, Inc.

The outlook is Stable.

SRA's ratings, including the B3 corporate family rating, are unaffected as its debts are expected to be repaid through the transaction and the company's ratings will then be withdrawn.

Moody’s said the Ba2 corporate family rating anticipates that Computer Sciences’ expertise at managing large, public sector information technology projects will continue to drive good profitability. While integrating the sizable acquisition of SRA and commencing independent operations, operating margin is expected to be at least 10%.

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