Moody's confirms Titan

Moody's Investors Service said it confirmed all the ratings of The Titan Corp. and changed the outlook to stable.

Ratings confirmed include the $135 million senior secured revolving credit facility due 2008 at Ba3, $341 million senior secured term loan B due 2009 at Ba3; $200 million senior subordinated notes due 2011 at B2; senior implied at Ba3; and senior unsecured issuer rating (non-guaranteed exposure) at B1.

Titan recently announced a settlement of the outstanding criminal inquiries by the U.S. government relating to its former international operations. The settlement was in line with Moody's expectations and required Titan to plead guilty to three felony counts and make total payments of $28.5 million. Moody's said the settlement will allow the company to continue to receive government contracts.

Moody's said the ratings continue to reflect a large and diverse contract backlog, solid revenue growth and the projected continued growth of the U.S. defense and information technology budgets. The ratings remain constrained by moderate leverage and the company's exposure to potential changes in government spending policies.

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