Moody's lifts CACI loans

Moody's Investors Service said it changed the outlook of CACI International, Inc. to positive from stable and upgraded the senior secured bank debt rating to Baa3 (LGD2, 21%) from Ba1 (LGD2, 23%). The Ba2 corporate family and probability-of-default ratings and the SGL-1 speculative-grade liquidity rating were affirmed.

The rating on the bank debt was upgraded due to a decreased amount of senior secured debt in the company's capital structure following a recent $50 million term loan prepayment, Moody's said.

The agency said the outlook change reflects CACI's growing scale, sustained moderate leverage and good cash flow; the likelihood that demand from the U.S. Department of Defense should remain strong through 2011; and CACI's new focus on expanding its federal health and energy business lines, which may enable greater revenue diversity in the future.

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