S&P might cut DynCorp

Standard & Poor's said it placed all ratings, including the B- corporate credit rating, on DynCorp International Inc. (DI) on CreditWatch with negative implications.

"The CreditWatch placement reflects the potential refinancing risks associated with DI's upcoming debt maturities," S&P credit analyst Chris Mooney said in a news release.

The company's $187 million term loan and undrawn $145 million revolver mature in July 2016 while its $455 million of unsecured notes mature in July 2017. The company faces difficult defense market conditions, which have resulted in lower margins, heightened competition, and the possibility that it may lose a significant contract, INL Air Wing.

"While we believe that the company will generate enough cash to meet its interest payments over the next 12 months, these factors could make refinancing its upcoming debt maturities challenging," Mooney added in the release.

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