Moody's rates Deltek loans B1

Moody's Investors Service said it affirmed Deltek's B1 corporate family and probability-of-default ratings and assigned B1 ratings (LGD3, 33%) to its proposed $30 million senior secured revolving credit facility due Oct 2015 and $190 million (as of June 30, 2010) senior secured term loan due Oct 2016.

The outlook remains positive.

Proceeds will be used to refinance debt, to replenish cash used for the acquisition of Input and for general corporate purposes.

Input is outside of Deltek's traditional software business, but provides a government contract market intelligence offering complementary to Deltek's strong lineup of software and services tailored to that industry, particularly its recently acquired GovWin business, according to the agency.

The B1 corporate family rating reflects Deltek's leadership position, strong cash generating capabilities and moderate leverage, Moody's said.

The company's relatively modest size and integration risks of its acquisitions are rating constraints, the agency said.

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