S&P affirms CACI International

S&P said it affirmed its BB+ issuer credit rating on CACI International Inc. The outlook is stable.

At the same time, the agency affirmed the BB+ issue-level rating on the company's first-lien credit facilities. The 3 recovery rating remains, indicating an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in a default scenario.

“Our rating on CACI reflects the company's meaningful scale in the highly competitive U.S. federal and civilian government contracting environment and its improving credit metrics, which are offset by management's desire to pursue additional acquisitions,” S&P said in a news release.

“We expect that CACI's increasing earnings will cause its debt to EBITDA to fall below 2.5x in fiscal-year 2019, though in our view, management is willing to increase the company's leverage significantly for a strategic acquisition opportunity.”

© 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.