S&P affirms GenCorp, rates loan BB-

Standard & Poor's said it affirmed its ratings, including the B+ corporate credit rating, on GenCorp Inc.

At the same time, S&P said it assigned its BB- bank loan rating and 1 recovery rating to the propulsion provider's proposed $280 million bank financing, indicating high expectations of a full recovery of principal following payment default.

The outlook is stable.

"The ratings on GenCorp reflect a weak financial profile, driven by high leverage and poor profitability, limited diversity and a modest scale of operations compared with competitors," said S&P credit analyst Christopher DeNicolo.

"These factors are offset somewhat by solid niche positions in aerospace propulsion and significant real estate holdings."

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