Moody's changes Leidos view to positive

Moody's Investors Service said it changed the outlook for Leidos Holdings, Inc. and Leidos, Inc. to positive from stable and affirmed the Baa3 senior unsecured ratings.

The positive outlook reflects Leidos' strengthening market position as the largest U.S. defense services contractor with measured financial policies and a broad range of capabilities.

“The company's investment and marketing strategies are producing impressive results. Based on existing backlog and new business development momentum we expect Leidos to achieve organic annual revenue growth of 5-7% over 2021-2022. We expect that in 2022 revenue will approach $15 billion up from about $13 billion today. Pro forma for the acquisition of Gibbs & Cox in April 2021 leverage was 3.8x, but in 2022 leverage will decline to 3x with free cash flow to debt approaching 15%,” Moody’s said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.