S&P affirms GenCorp

Standard & Poor's said it affirmed its bank loan and recovery ratings on GenCorp Inc.'s $234.5 million bank financing.

The agency said that the financing, which consists of a $80 million revolving credit facility and a $154.5 million term facility, is rated BB-, one notch higher than the corporate credit rating on GenCorp, with a recovery rating of 1.

The outlook is stable.

"The corporate credit rating reflects a weak financial profile, driven by high leverage and poor profitability 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, the agency added.

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