Moody's affirms Synchronous

Moody's Investors Service said it affirmed the debt ratings of Synchronous Aerospace Group, including the B3 corporate family and Caa1 probability of default ratings.

The outlook remains negative.

According to the agency, the B3 affirmation reflects Synchronous' position as a small manufacturer of specialized parts for several aircraft platforms, especially the B737 and other Boeing legacy models.

Financial leverage, currently high for the B3 rating, will probably remain elevated due to the limited opportunity for near term debt reduction because of weak free cash flow, the agency added.

The operating margin has been volatile in the past, and could be under some further downward pressure should there be cuts in airplane production, Moody's noted.

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