S&P affirms L-1 Identity

Standard & Poor's said it affirmed the B+ corporate credit rating on L-1 Identity Solutions Inc., and removed the ratings from CreditWatch with developing implications, where they were placed in June 2010.

The agency also said it affirmed its BB bank loan ratings with a 1 recovery rating on the debt, indicating 90% to 100% recovery in a default.

The agency also affirmed the B+ rating on its $175 million senior unsecured notes. The 4 recovery remains unchanged, indicating 30% to 50% recovery in a default.

The outlook is negative.

L-1 completed the sale of its intelligence services businesses to BAE Systems Information Solutions Inc. for $295.8 million, inclusive of acquired cash.

The proceeds will be used to extinguish its existing term loan of about $269 million, as well as a portion of borrowings outstanding under its revolving credit facility, S&P said.

The ratings reflect the company's dependence on government spending, negative operating trends over the past 12 months and still-high leverage despite recent debt reduction, the agency said.

The company's presence in a growth niche market, its portfolio of biometrics products and services and base of long-term contracts partially offset company weaknesses, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.