TEXT-S&P rates Alliant Techsystems term loan 'BBB-'

Thu Aug 23, 2012 5:12pm EDT

Aug 23 - Standard & Poor's Ratings Services said today that it assigned its
'BBB-' issue-level rating to Alliant Techsystems Inc.'s  $200 million
incremental secured term loan due 2017. 
Alliant intends to use the proceeds--plus cash on hand--to redeem $400 million 
of its 6.75% subordinated notes. We also assigned a '1' recovery rating to the 
debt, indicating our expectation for very high (90%-100%) recovery for lenders 
in the event of a payment default. 

The 'BB' corporate credit rating is unchanged. The outlook remains negative, 
reflecting risks to the company's government programs.

The existing issue ratings are also unchanged. The addition to secured debt 
implies less value available for both the existing secured and subordinated 
creditors. However, the somewhat lower recovery for secured debt is still 
within the bounds of our high recovery category. With respect to the lower 
priority debt, we also see no meaningful change in the recovery prospects, 
given the anticipated offsetting reduction in the amount of such debt from 
Alliant's redemption of the 6.75% subordinated notes. For our full recovery 
analysis, see the recovery report to be published shortly on RatingsDirect.

RELATED CRITERIA AND RESEARCH
Alliant Techsystems Inc., June 15, 2012


RATINGS LIST

Alliant Techsystems Inc.
 Corporate Credit Rating               BB/Negative/--

New Rating

Alliant Techsystems Inc.
 $200 mil secured term loan due 2017   BBB-
  Recovery Rating                      1