Fitch puts GenCorp convertibles on positive, negative watch

Fitch Ratings said it affirmed GenCorp Inc.'s issuer default rating at B-, senior secured debt at BB- and senior subordinated notes at BB- and put the company's 5.75% subordinated convertible notes due 2007 on Rating Watch positive - with the expectation of raising the ratings to BB- from B- should the transaction close as proposed.

Fitch also put the 4% contingent convertible subordinated notes and 2.25% contingent convertible subordinated debentures, both due 2024, on Rating Watch negative - with expectation of lowering the ratings to CCC+ from B-.

The outlook remains stable.

The rating action follows the announcement Thursday by GenCorp of plans to increase its senior secured credit facilities to $234.5 million from $178.5 million. GenCorp is also seeking an amendment to the indenture governing its 9.5% senior subordinated notes due 2013 to permit the company to incur the additional debt.

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