NEW YORK (AFX) - Standard & Poor's Ratings Services on Thursday said it raised defense contractor DynCorp International LLC's corporate credit rating to 'BB-' from 'B+,' citing the company's improved financial profile.
The ratings were taken off CreditWatch where they were placed with positive implications on Oct. 3. The outlook is stable.
DynCorp's parent, DynCorp International Inc., went public in May, selling 25 million common shares resulting in gross proceeds of about $375 million.
The proceeds were used to fund a $100 million dividend to its equity sponsor, redeem about $220 million of preferred stock and repay $28 million in subordinated debt.
'DynCorp International's improved capital structure following the IPO and generally positive outlooks for its key markets should enable the company to maintain a financial profile consistent with the revised ratings,' S&P said in a statement.
DynCorp shares closed up 18 cents at $10.96 on the New York Stock Exchange.
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