Moody’s reviews TASC

Moody's Investors Service said it placed the ratings of TASC, Inc. under review following the announced merger between TASC and Engility Holdings, Inc.

Ratings under review for upgrade include the B3 corporate family, B3-PD probability of default and the Caa2 rating on the $250 million second-lien term loan due 2021.

Ratings placed under review with direction uncertain include the B1 ratings on its $50 million first-lien revolver due 2019 and $395 million first-lien term loan due 2020.

The B3 corporate family rating was placed under review for possible upgrade because the transaction, as described, could result in a more broadly diversified federal services organization with less financial leverage and a more competitive cost structure. As such, expected credit metrics and other risk considerations may support a higher rating. If the corporate family rating were to rise from the transaction, it would likely do so by not more than one notch.

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