Security services firm on the defensive with S&P downgrade

Standard & Poor's yesterday downgraded US defense and government outsourced services provider DynCorp International from BB- to B+  as the company's credit protection measures have deteriorated following a leveraged buyout in July 2010.

The company's profitablity has also been lower than expected, while the loss of existing contracts and failure to capture sufficient new business has impacted negatively on DynCorp's credit metrics.

The company's debt includes $455 million in unsecured notes, a $570 term loan B, and a $150 million revolver loan according to S&P.