S&P cuts DynCorp outlook

Standard & Poor's said it affirmed its ratings, including the B+ corporate credit rating, on DynCorp International Inc. and revised the outlook to negative from stable.

"Credit protection metrics have not improved as much as we expected over the past year because of weak profitability, despite significant debt reduction in 2011," said S&P credit analyst Chris Mooney in a news release.

The agency said the ratings on DynCorp International reflect its aggressive financial profile due to high debt following a 2010 leveraged buyout by Cerberus Capital Management LP. The agency said it assesses DynCorp's business risk profile as weak because of increased price competition, limited contract diversity, the risky nature of some of its operations and possible changes to U.S. foreign policy.

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