Moody's affirms Alliant Techsystems

Moody's Investors Service said it affirmed Alliant Techsystems Inc.'s Ba3 corporate family and probability-of-default ratings and B1 (LGD4, 66%) senior subordinated notes and assigned Baa3 (LGD2, 13%) ratings to the company's proposed senior secured revolving credit facility and term loan due 2012.

The outlook remains positive.

In March, Alliant announced its plans to refinance its senior secured bank credit facilities, replacing its $223 million term loan facility and $300 million revolving credit facility, both due 2009, with a $275 million term loan and $500 million revolver due 2012. The new term loan also has a $225 million accordion feature. The agency said the transaction extends the company's debt maturities and lowers pricing, but the refinancing otherwise had no material impact on Alliant's credit fundamentals.

The ratings balance Alliant's strong and stable financial performance and retained cash flow generation against its relatively high leverage, the high amount of goodwill in its asset base and its modest levels of free cash flow generation, the agency said.

The positive outlook reflects Moody's expectations that Alliant will continue to grow its revenue base while possibly pursuing modestly sized acquisitions and will, over the near term, return to a policy of modest debt repayments upon conclusion of its current share repurchase program.

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