S&P rates MHVC loan B

S&P said it assigned a B corporate credit rating to MHVC Acquisition Corp.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to the company's $350 million first-lien term loan due 2024 and $40 million revolving credit facility due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

Private equity firm Veritas Capital is acquiring MHVC Acquisition, Harris Corp.'s government information technology (IT) services business, for $675 million, S&P explained.

The ratings reflect the company's high debt leverage following the spin-off, its ownership by a private equity sponsor, its modest scale and its exposure to the competitive government services market, S&P said.

The ratings also consider the long-term nature of most of its contracts, the company's good program diversity for its size, the agency said, and the improving outlook for government spending.

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