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API Technologies Corp. May 11
Standard & Poors, May 2011
Abstract
Moderate debt leverage for the rating; and Majority of sales derived from the still-sizeable military market. Somewhat limited program and customer diversity; Slowing U.S. defense spending; Small revenue base; and Integration risk associated with recent acquisitions. Standard & Poor's Ratings Services' ratings on API Technologies Corp. (API) reflect our expectation that the company's earnings and cash generation will improve as a result of its acquisition of Spectrum Control Inc. (Spectrum), although we believe some of its planned cost-reduction initiatives involve risks. Our weak business risk profile assessment incorporates our view that API has significant exposure to a single program and customer, as well as a relatively modest scale of operations. Additionally, our outlook for defense spending--while still at high levels--is...
Companies mentioned in this report are: API Technologies Corp.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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