S&P affirms Wyle, ups outlook to stable

Standard & Poor's said it affirmed its B+ corporate credit rating on Wyle Holdings Inc. and revised its outlook to stable from negative.

At the same time, the agency said it affirmed its B+ bank loan rating, along with its 2 recovery rating, on Wyle's $168 million senior secured bank facility, including the proposed $40 million add-on term loan.

The outlook revision reflects moderate deleveraging since the acquisition of General Dynamics' Aeronautics division in early 2005 and a solid two-year track record as a combined entity following successful integration efforts, S&P noted.

The agency added that the ratings on Wyle reflect modest profitability inherent in the government services business, reliance on budgets of key Federal government agencies and high financial leverage while these factors partly are offset by a strong niche position providing test & evaluation, acquisition support and life sciences services and a predictable revenue stream based on contractual backlogs of business.

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