Fitch gives Cubic B

Fitch Ratings said it assigned Cubic Corp. and Atlas CC Acquisition Corp. expected B issuer default ratings.

The agency also assigned expected ratings to the company's first-lien term loan B and revolver of BB/RR1, issued at Atlas CC Acquisition Corp. The outlook is stable.

“Cubic's ratings and outlook are supported by its strong profitability, contract diversification, revenue stability, and significant intellectual property (IP) portfolio, which differentiates it from its competition. The company has a strong backlog, which is expected to expand over the next few years, given the potential increase in infrastructure spending on both a state and federal level,” Fitch said in a press release.

Cubic is being acquired Veritas Capital and Evergreen Capital.

However, the agency noted Cubic’s initial leverage of more than 6x is high for its rating, and it faces a degree of cyclicality.

© 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.