Moody’s rates CSRA facility Ba2

Moody's Investors Service said it affirmed CSRA Inc.’s Ba2 corporate family rating and the Ba2 rating on the term loan A1 facility due 2019.

The agency also assigned Ba2 ratings to the amended $700 million secured revolving credit facility, which was extended to 2022 from 2021; amended $1,549,000,000 term loan A2, which was extended to 2022 from 202;1 and amended $850 million term loan B due 2023, which was increased from $650 million.

The increased proceeds from term loan B will be used to pay down borrowings under the revolver in connection with the $235 million acquisition of Praxis Engineering Technologies, Inc.

“The Ba2 CFR reflects CSRA's scale and qualifications to lead large information technology projects within the federal government, including network modernization of classified data systems and migration of data from onsite to cloud-based platforms,” Moody’s said in a news release.

“While CSRA experienced organic revenue contraction since becoming an independent company in November 2015, Moody's expects CSRA's revenue performance to improve with low single digit annual growth over 2018-2019.”

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