S&P puts Alliant Techsystems on negative watch

Standard & Poor's said it placed its ratings on Alliant Techsystems Inc., including the BB- corporate credit and senior secured debt rating and B subordinated debt rating, on CreditWatch with negative implications.

The action affects the company's BB- rated $250 million revolving credit facility due 2007 and $525 million term loan C bank loan due 2009 as well as its B rated $400 million 8.5% senior subordinated notes due May 15, 2011, S&P said on its Web site.

S&P said the CreditWatch placement follows the company's announcement that it will be acquiring Mission Research Corp. The exact purchase price and financing details have not been disclosed, but reports indicate the price to be as much as $230 million. The transaction is likely to be financed with debt.

The existing ratings on Alliant reflect an active acquisition program and a somewhat aggressively leveraged balance sheet, but also its overall satisfactory credit ratios and leading market positions, S&P noted.

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