S&P lowers TASC to negative, rates loans B+, CCC+

Standard & Poor's said it revised the outlook on TASC Inc. to negative from stable and affirmed the corporate credit rating at B.

The agency also said it assigned a B+ rating on the company's proposed $482 million senior secured first-lien credit facilities, which consists of a $50 million revolving credit facility due 2019 and a $432 million term loan due 2020.

The recovery rating is 2 and indicates 70% to 90% expected default recovery.

S&P also assigned a CCC+ rating on the company's proposed $200 million senior secured second-lien credit facility. The recovery rating is 6 and indicates 0 to 10% expected default recovery.

The ratings reflect the company's fair business risk profile, incorporating its focus on intelligence sector contracts, the agency said.

The ratings also consider TASC's diversified contract and task orders from different U.S. federal and civil government agencies, S&P said.

Still, the company faces headwinds from the continued government budget pressure over the intermediate term, the agency added.

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