Fitch rates Heico notes BBB-

Fitch Ratings said it published BBB- issuer default ratings for Heico Cos., LLC and Heico Holding, Inc. and assigned an initial BBB- issuer default rating to Heico Canada Holding Co.

In addition, Fitch expects to assign a rating of BBB- to the planned issuance of $250 million 10-year senior unsecured notes by Heico and Heico Canada.

The outlook is stable.

Proceeds will be used for general corporate purposes, including the repayment of debt. The new notes are being offered under Rule 144A.

Ratings reflect the company's sufficient liquidity, consistent financial strategies and diverse businesses, the agency said.

Heico's leverage is within an acceptable range for its ratings, with a debt-to-EBITDA ratio on average at about 2 times over the past five years, including a ratio of 2.5x as recently as 2007. Leverage was 2.2x as of year-ended Dec. 31, 2009 and is projected to grow to nearly 2.7x by year-end.

Concerns include Heico's expected increase in leverage metrics during the current weak economic period, the agency said.

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