S&P cuts ADS Tactical view

Standard & Poor's said it revised its outlook on ADS Tactical Inc. to negative from stable and affirmed the ratings on the company, including the B corporate credit rating.

"The outlook revision reflects the potential that ADS' credit metrics, which are now weak for the rating, do not show improvement because of increasingly challenging operating conditions," said S&P credit analyst Chris Mooney in a news release.

"Debt to EBITDA, which was 6.8x as of Dec. 31, 2013, is currently above levels appropriate for the rating (5.5x-6.5x), but we expect a combination of debt reduction and modestly higher earnings to result in improvement over the next two to three years."

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