S&P: GenCorp unaffected

Standard & Poor's said GenCorp Inc.'s (BB-/developing/--) announcement that it completed the sale of its GDX Automotive unit to Cerebus Capital Management LP for $147 million in cash does not affect its ratings and outlook.

Any change in the ratings or outlook would depend largely on how the company uses the proceeds, which could be for debt repayment or acquisitions, S&P said. Additional considerations include the possible sale of the firm's fine chemicals unit, the sale or development of real estate holdings, and the performance of the remaining businesses.

Without GDX, which comprised 60% of consolidated revenues, GenCorp will be a significantly smaller company. However, Fitch said management will now be able to focus on the core propulsion operations and on realizing the value of substantial real estate holdings that are in various stages of remediation and rezoning.

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