S&P trims LMI Aerospace

Standard & Poor's said it lowered its corporate credit rating on LMI Aerospace Inc. to B from B+ and lowered its issue-level rating and recovery rating on the company's secured first-lien facility, which consists of a $125 million revolver and a $225 million term loan, to B from B+ and to 4 from 3, respectively.

The 4 recovery rating indicates an expectation of average (30%-50%) recovery in the event of a payment default.

"The downgrades reflect our view that LMI's credit metrics will remain weaker than we previously expected due to order deferrals in the company's aerostructures business and softness in demand for its engineering services," said S&P credit analyst Tatiana Kleiman in a news release. "We now expect Standard & Poor's adjusted debt to EBITDA of about 5.5x-6x in 2014, compared with our previous expectation for about 4.5x-5x."

The outlook is stable.

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