S&P affirms Wyle, gives loan BB

Standard & Poor's said it affirmed its B+ corporate credit rating on Wyle Holdings Inc.

The outlook is stable.

At the same time, S&P said it assigned its bank loan and recovery ratings to the company's $230 million senior secured financing, noting that the first-lien facilities, composed of a $30 million revolving credit facility and a $200 million term loan B, are rated BB, with a recovery rating of 1.

Proceeds from the first-lien term loan, totaling $200 million, along with additional contributed debt and equity capital, will be used to refinance existing indebtedness and to finance the acquisition of RS Information Systems, the agency noted.

S&P said that the ratings on Wyle reflect modest profitability inherent in the government services business, reliance on budgets of key U.S. federal government agencies and high financial leverage while these factors are in part offset by strong niche positions, providing research, development and engineering services along with program management and acquisition support solutions to government agencies, as well as by predictable revenue streams based on contractual backlogs of business.

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