S&P could lower DynCorp

Standard & Poor's said it placed its ratings, including the B+ corporate credit rating, on DynCorp International Inc. on CreditWatch with negative implications.

The CreditWatch placement is a result of weaker-than-expected sales and earnings. Management believes sales could decline by a mid- to high-teen percent in 2014, compared with the previous expectation for a mid-single-digit percent decline because of U.S. budget reductions and lower troop levels.

S&P said it believes lower earnings stemming from volume declines could result in debt to EBITDA of about 5x, compared with previous expectations of 4x to 4.5x.

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