S&P rates Leidos, Abacus loans BBB-

S&P said it assigned its BBB- corporate credit rating to Abacus Innovations Corp., because it views it as a core subsidiary of Leidos Holdings Inc., and placed the rating on CreditWatch with negative implications.

At the same time, the agency assigned its BBB- issue-level rating to Leidos Inc.'s proposed $750 million secured revolver due 2021 and $690 million term loan A3 due 2021.

Additionally, S&P assigned its BBB- issue-level rating to Abacus' proposed $400 million secured term loan A1 due 2019, $310 million term loan A2 due 2021 and $1,131,450,000 term loan B due 2023.

All other ratings on Leidos Holdings Inc. and Leidos Inc. remain on CreditWatch, where they were placed with negative implications on Jan. 26.

"We expect to affirm our corporate credit ratings on Leidos and its subsidiaries and remove all of our ratings on the companies from CreditWatch once the transaction closes, which we expect will occur in the third quarter of 2016," S&P credit analyst Christopher Denicolo said in a news release.

"We believe that the deterioration in Leidos credit ratios due to the increased debt it will take on to fund the acquisition will be offset by the improvement in the combined company's business risk profile."

© 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.