S&P rates Alliant Techsystems loan BB+

Standard & Poor's said it assigned its BB+ bank loan rating and 1 recovery rating to Alliant Techsystems Inc.'s proposed $775 million secured credit facility, indicating high expectations of a full recovery of principal in the event of payment default.

The facility consists of a $500 million five-year revolver and a $275 million five-year term loan A, S&P said, noting that the proceeds from the new term loan will be used to refinance the company's existing term loan and drawings on the existing $300 million revolver.

At the same time, the agency said it affirmed its other ratings, including the BB corporate credit rating, on Alliant Techsystems.

The outlook is stable.

According to the agency, the ratings on Alliant reflect a somewhat aggressively leveraged balance sheet and limited program diversity, but benefit from leading market positions, satisfactory profitability and a generally favorable environment for defense spending.

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