Fitch rates Perspecta BB+, debt BBB-

Fitch Ratings said it assigned a BB+ long-term issuer default rating to Perspecta Inc. and BBB- issue level ratings to its senior secured debt.

The outlook is stable.

The actions affect an anticipated $3.035 billion of total debt, including a $600 million five-year revolving credit facility.

DXC Technology is spinning off its U.S. Public Sector (USPS) business, which will combine with Vencore Holding Corp. and KeyPoint Government Solutions (portfolio companies of Veritas Capital) to form Perspecta.

Perspecta will pay $984 million in cash consideration to DXC and $400 million to Veritas. It will also refinance $996 million of existing Vencore and KeyPoint debt and pay an estimated $108 million in transaction and financing fees.

Perspecta will finance the transaction through $2,488,000,000 in borrowings under new senior secured credit facilities with total commitments of $2,835,000,000.

“The ratings and outlook reflect the combined businesses' contract and customer agency diversity relative to other IT and mission services providers, which Fitch believes reduces the operating profile risk of the entities on their own, and compared with their peers on a combined basis,” the agency said in a news release.

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