March 20, 2012 / 4:32 PM / 6 years ago

TEXT-S&P cuts TASC Inc ratings

March 20 - Standard & Poor's Ratings Services said today that it lowered its
ratings on TASC Inc.'s senior secured term loan B to 'BB-' (one notch higher
than our corporate credit rating on the company) from 'BB' following a $65
million term loan add-on, bringing the aggregate dollar amount of the senior
secured term loan B to $740 million. We also revised our recovery rating to '2'
from '1'. The '2' recovery rating indicates our expectation of substantial
(70%-90%) recovery of principal in the event of a payment default.	
	
The 'B+' corporate credit and stable outlook on TASC remain unchanged. The 	
rating reflects our expectation that the company's long-standing customer 	
relationships with key intelligence and defense organizations within the U.S. 	
government will provide some downside protection from potential near-term 	
revenue and profitability pressure due to an evolving competitive landscape 	
for government contractors. The company's financial risk profile is "highly 	
leveraged" (based on our criteria), but long-term contracts provide revenue 	
visibility and profitability has been consistent.	
	
TASC is a U.S government contractor that provides advanced systems engineering 	
and technical assistance (SETA) services to federal agencies with a primary 	
focus on the intelligence and defense sectors. (For the complete corporate 	
credit rating rationale, see the summary analysis on TASC, published Nov. 18, 	
2011, on RatingsDirect. For the complete recovery analysis, see the recovery 	
report on TASC, to be published as soon as possible following the release of 	
this article.) 	
	
RELATED CRITERIA AND RESEARCH	
     -- U.S. Technology Companies' Liquidity Is Higher, For Now, Jan. 18, 2012	
     -- Industry Economic Outlook: Slow Global IT Spending Growth Is Likely To 	
Continue Into 2012, Jan. 12, 2012	
     -- Issuer Ranking: Global Technology Ratings, Strongest To Weakest, Dec. 	
22, 2011	
     -- Reshuffling The Debt: Global High-Tech M&A Activity Accelerates, Oct. 	
13, 2011	
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011	
     -- Key Credit Factors: Methodology And Assumptions On Risks In The Global 	
High Technology Industry, Oct. 15, 2009	
     -- Criteria Methodology: Business Risk/Financial Risk Matrix Expanded, 	
May 27, 2009	
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008	
	
RATINGS LIST	
	
TASC Inc.	
 Corporate Credit Rating             B+/Stable/--	
	
Downgraded; Recovery Rating Revised	
                                     To               From	
TASC Inc.	
 Senior Secured	
  $740 mil term loan B               BB-              BB	
   Recovery Rating                   2                1	
  $100 mil revolver                  BB-              BB	
   Recovery Rating                   2                1	
	
	
Complete ratings information is available to subscribers of RatingsDirect on 	
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 	
by this rating action can be found on Standard & Poor's public Web site at 	
www.standardandpoors.com. Use the Ratings search box located in the left 	
column.	
	
Primary Credit Analyst: David Tsui, CFA, CPA, New York (1) 212-438-2138;	
                        david_tsui@standardandpoors.com	
Secondary Contact: Alfred Bonfantini, CFA, New York (1) 212-438-7159;	
                   alfred_bonfantini@standardandpoors.com	
	
	
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 Time           USN   User    Headline
 20/03/2012     WNA2  WE      S&P LOWERS TASC SR SECD RTG TO 'BB-'
 12:16:12       86    SCRIPT  AFTER $65M ADD-ON
 NEW YORK (Standard & Poor's) March 20, 2012--Standard & Poor's Ratings Services
said today that it lowered its ratings on TASC Inc.'s senior secured term loan B
to 'BB-' (one notch higher than our corporate credit rating on the company) from
'BB' following a $65 million term loan add-on, bringing the aggregate dollar
amount of the senior secured term loan B to $740 million. We also revised our
recovery rating to '2' from '1'. The '2' recovery rating indicates our
expectation of substantial (70%-90%) recovery of principal in the event of a
payment default. The 'B+' corporate credit and stable outlook on TASC remain
unchanged. The rating reflects our expectation that the company's long-standing
customer relationships with key intelligence and defense organizations within
the U.S. government will provide some downside protection from potential
near-term revenue and profitability pressure due to an evolving competitive
landscape for government contractors. The company's financial risk profile is
"highly leveraged" (based on our criteria), but long-term contracts provide
revenue visibility and profitability has been consistent. TASC is a U.S
government contractor that provides advanced systems engineering and technical
assistance (SETA) services to federal agencies with a primary focus on the
intelligence and defense sectors. (For the complete corporate credit rating
rationale, see the summary analysis on TASC, published Nov. 18, 2011, on
RatingsDirect. For the complete recovery analysis, see the recovery report on
TASC, to be published as soon as possible following the release of this
article.) RELATED CRITERIA AND RESEARCH -- U.S. Technology Companies' Liquidity
Is Higher, For Now, Jan. 18, 2012 -- Industry Economic Outlook: Slow Global IT
Spending Growth Is Likely To Continue Into 2012, Jan. 12, 2012 -- Issuer
Ranking: Global Technology Ratings, Strongest To Weakest, Dec. 22, 2011 --
Reshuffling The Debt: Global High-Tech M&A Activity Accelerates, Oct. 13, 2011
-- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- Key
Credit Factors: Methodology And Assumptions On Risks In The Global High
Technology Industry, Oct. 15, 2009 -- Criteria Methodology: Business
Risk/Financial Risk Matrix Expanded, May 27, 2009 -- 2008 Corporate Criteria:
Analytical Methodology, April 15, 2008 RATINGS LIST TASC Inc. Corporate Credit
Rating B+/Stable/-- Downgraded; Recovery Rating Revised To From TASC Inc. Senior
Secured $740 mil term loan B BB- BB Recovery Rating 2 1 $100 mil revolver BB- BB
Recovery Rating 2 1 Complete ratings information is available to subscribers of
RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All
ratings affected by this rating action can be found on Standard & Poor's public
Web site at www.standardandpoors.com. Use the Ratings search box located in the
left column. Primary Credit Analyst: David Tsui, CFA, CPA, New York (1)
212-438-2138; david_tsui@standardandpoors.com Secondary Contact: Alfred
Bonfantini, CFA, New York (1) 212-438-7159;
alfred_bonfantini@standardandpoors.com No content (including ratings,
credit-related analyses and data, model, software, or other application or
output therefrom) or any part thereof (Content) may be modified, reverse
engineered, reproduced, or distributed in any form by any means, or stored in a
database or retrieval system, without the prior written permission of Standard &
Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content
shall not be used for any unlawful or unauthorized purposes. S&P and any
third-party providers, as well as their directors, officers, shareholders,
employees, or agents (collectively S&P Parties) do not guarantee the accuracy,
completeness, timeliness, or availability of the Content. S&P Parties are not
responsible for any errors or omissions (negligent or otherwise), regardless of
the cause, for the results obtained from the use of the Content, or for the
security or maintenance of any data input by the user. The Content is provided
on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED
WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR
DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE
CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event
shall S&P Parties be liable to any party for any direct, indirect, incidental,
exemplary, compensatory, punitive, special or consequential damages, costs,
expenses, legal fees, or losses (including, without limitation, lost income or
lost profits and opportunity costs or losses caused by negligence) in connection
with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the
Content are statements of opinion as of the date they are expressed and not
statements of fact. S&P's opinions, analyses, and rating acknowledgment
decisions (described below) are not recommendations to purchase, hold, or sell
any securities or to make any investment decisions, and do not address the
suitability of any security. S&P assumes no obligation to update the Content
following publication in any form or format. The Content should not be relied on
and is not a substitute for the skill, judgment, and experience of the user, its
management, employees, advisors, and/or clients when making investment and other
business decisions. S&P does not act as a fiduciary or an investment advisor
except where registered as such. While S&P has obtained information from sources
it believes to be reliable, S&P does not perform an audit and undertakes no duty
of due diligence or independent verification of any information it receives. To
the extent that regulatory authorities allow a rating agency to acknowledge in
one jurisdiction a rating issued in another jurisdiction for certain regulatory
purposes, S&P reserves the right to assign, withdraw, or suspend such
acknowledgement at any time and in its sole discretion. S&P Parties disclaim any
duty whatsoever arising out of the assignment, withdrawal, or suspension of an
acknowledgment as well as any liability for any damage alleged to have been
suffered on account thereof. S&P keeps certain activities of its business units
separate from each other in order to preserve the independence and objectivity
of their respective activities. As a result, certain business units of S&P may
have information that is not available to other S&P business units. S&P has
established policies and procedures to maintain the confidentiality of certain
nonpublic information received in connection with each analytical process. S&P
may receive compensation for its ratings and certain analyses, normally from
issuers or underwriters of securities or from obligors. S&P reserves the right
to disseminate its opinions and analyses. S&P's public ratings and analyses are
made available on its Web sites, www.standardandpoors.com (free of charge), and
www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be
distributed through other means, including via S&P publications and third-party
redistributors. Additional information about our ratings fees is available at
www.standardandpoors.com/usratingsfees. Any Passwords/user IDs issued by S&P to
users are single user-dedicated and may ONLY be used by the individual to whom
they have been assigned. No sharing of passwords/user IDs and no simultaneous
access via the same password/user ID is permitted. To reprint, translate, or use
the data or information other than as provided herein, contact Client Services,
55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to:
research_request@standardandpoors.com. Copyright (c) 2012 by Standard & Poor's
Financial Services LLC. All rights reserved. In addition to CreditWire, Standard
& Poor's also offers RatingsDirect, the online source for real-time, objective
credit ratings and research; and RatingsXpress, a real-time, customizable
digital feed of credit information. If you are interested in becoming a
subscriber and would like more information on Standard & Poor's real-time
information products and services, please call: HONG KONG (852) 2533-3500;
LONDON (44) 20-7176-7176; MELBOURNE (61) 3-9631-2000; NEW YORK (1) 212-438-7280;
PARIS (33) 1-4420-6758 NORMAL RATINGS S&P Lowers TASC Sr Secd Rtg To 'BB-' After
$65M Add-On yes

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