S&P: Wyle outlook stable

Standard & Poor's said it revised the outlook on Wyle Services Corp. to stable from negative and the B+ corporate credit rating remains unchanged.

"The B+ rating on Wyle reflects modest profitability inherent in the government services business, budget reliance on the key U.S. federal government agencies, limited flexibility to pursue additional debt-financed acquisitions and still-high leverage despite recent moderate reduction," S&P analyst David Tsui said in a statement.

"Solid positions in the niche government services market and predictable revenue streams based on a contractual backlog of business, as well as a more diversified customer base as a result of the CAS Group acquisition, partially offset these factors."

Wyle's total debt (including capitalized operating leases) to EBITDA is in the low-6x area.

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