S&P: DynCorp view to stable

Standard & Poor's said it affirmed the B+ corporate credit rating on DynCorp International Inc.

The agency said it revised the outlook to stable from negative.

S&P also said it affirmed the existing BB- rating on the company's proposed amended credit facility, which includes up to a $50 million add-on to the revolver. The agency affirmed its 2 recovery rating, indicating 70% to 90% expected default recovery.

The outlook revision reflects a belief that credit metrics, which have improved over the past year as a result of earnings growth combined with debt reduction, will remain appropriate for the rating over the next year, including debt-to-EBITDA between 4x and 4.5x, S&P said.

Revenues and earnings are expected to decline due to U.S. defense budget pressures, the company should still generate decent free cash flow, which should offset the impact of lower earnings on credit ratios, the agency said.

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