S&P cuts ADS Tactical ratings

Standard & Poor's said it lowered its ratings on ADS Tactical Inc., including its corporate credit rating to B from B+.

The outlook is stable.

S&P also lowered its rating on the company's senior notes to B- from B. The recovery rating on the notes is unchanged at 5, which reflects S&P's expectation that lenders would receive a modest (10%-30%) recovery in the event of a payment default.

"The downgrade reflects the impact of revenue mix changes and business development costs on the company's credit profile and our expectation that these factors, coupled with the more uncertain outlook for defense spending, will prevent the company from restoring credit metrics to previous levels," said S&P credit analyst Lisa Jenkins in a news release.

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