S&P downgrades Wyle

Standard & Poor's said it lowered the corporate credit rating on Wyle Services Corp. to B from B+, along with its rating on its $325 million senior secured facilities, which consist of a $35 million revolving credit facility due 2016 and a $290 million term loan due 2017, to BB- from BB.

The 1 recovery rating indicates 90% to 100% expected default recovery.

S&P also said it lowered the rating on the company's $175 million senior subordinated notes due 2018 to CCC+ from B-.

The 6 recovery rating indicates 0% to 10% expected default recovery.

The outlook is stable.

The downgrade reflects a view that revenue could decline further as a result of ongoing federal government budget pressure and potential impact from sequestration, said David Tsui, an S&P analyst.

The stable rating outlook is based on revenue visibility from long-term contracts and contract backlog, the analyst said.

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