Moody's rates AIS Acquisition loans B2

Moody's Investors Service said it assigned a B2 rating to AIS Acquisition Corp.'s proposed senior secured credit facilities.

AIS is a 100%-owned subsidiary of Federal Information Technology Systems LLC.

Proceeds from the proposed offering and from $47.6 million of equity contributed by an equity sponsorship group lead by Kelso & Co. will be used to finance the acquisition of Sensor Systems Inc. by Federal IT for $117.2 million.

In addition, Moody's assigned AIS a senior implied rating of B2 and a senior unsecured issuer rating of B3. The outlook is stable.

Moody's said the ratings reflect Federal IT's high leverage relative to the company's small revenue base, reliance on a limited number of products concentrated predominantly within the U.S. Department of Defense and intelligence agencies contracting sector, its short history of operations under current management, the integration risks associated with the Sensor acquisition and the potential for future acquisition activity should the opportunity be presented.

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