S&P ups Advanced Integration, rates loan BB-

S&P said it raised its corporate credit rating on Advanced Integration Technology LP (AIT) to BB- from B+.

The outlook is stable.

At the same time, the agency assigned a BB- issue-level rating and 3 recovery rating to the company's proposed $107 million term loan. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in a default scenario.

Additionally, S&P affirmed the BB- issue-level rating on the existing first-lien credit facility and revised the recovery rating to 3 from 2 to reflect the increased amount of first-lien debt. The 3 recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in a default scenario.

"The upgrade reflects AIT's increased size and somewhat improved customer, product, and end-market diversity from its recent acquisitions, as well as higher revenue and earnings from new contracts, especially with defense customers," S&P credit analyst Tennille Lopez said in a news release.

"However, the acquisitions will result in a modest deterioration in margins and somewhat higher leverage than we previously expected."

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