Fitch lifts Goodrich view to positive

Fitch Ratings said it affirmed Goodrich Corp.'s issuer default rating, senior unsecured debt and bank credit facility at BBB and revised he outlook to positive from stable.

The agency said Goodrich's ratings reflect its position as a leading supplier to the aerospace industry, its strong and growing share of content in commercial and military aircraft, the company's diversified customer base, a balanced mix between original equipment manufacturer and aftermarket sales and the company's margin levels.

Concerns relate to the company's cash deployment strategy, which will likely include greater expenditures for share repurchases and acquisitions now that the company has met its leverage targets; Goodrich's exposure to exogenous shocks such as terrorism and disease; and underfunded pension plans and potential asbestos liabilities, Fitch said.

The positive outlook is based on the company's expanding profit margins, stronger credit metrics, higher cash generation, improving competitive position and market share, as well as industry growth trends in its primary customer channels, the agency said.

For the last 12 months ended June 30, the debt-to-operating EBITDA ratio was 1.8 times.

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