Moody’s upgrades TASC

Moody's Investors Service said it upgraded the first- and second-lien debt ratings of TASC, Inc. following the merger with Engility Holdings, Inc. that closed on Feb. 26.

This concludes the review for upgrade that began on Oct. 30.

TASC became a subsidiary of Engility upon close of the merger.

Moody’s said the improved first- and second-lien reflect the better credit profile with more revenue diversity, lower financial leverage and higher interest coverage, resulting through the merger.

The Ba3 first-lien and Caa1 second-lien ratings that were assigned to the merger entity's incremental acquisition debts continue unchanged. TASC became an indirect subsidiary of Engility upon close of the merger. Both TASC's and Engility's operating subsidiaries guarantee and provide security to the debts.

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