S&P turns Hexcel view to positive

S&P said it changed its outlook for Hexcel Corp. to positive from stable and affirmed the BB+ ratings on the issuer and its first-lien debt.

“Credit metrics have continued to improve, though remain weaker than pre-pandemic levels. Demand for Hexcel's composite materials for commercial aerospace has come back strong since the substantial weakening brought on during the pandemic in 2020. During the back half of 2021, the company realized significant recovery as aircraft manufacturers ramped up production to meet growing demand for narrowbody aircraft as domestic travel returned. This momentum continued into 2022 as strong demand for narrowbody aircraft and business jets continues to be robust,” S&P said in a press release.

However, the agency said it forecasts Hexcel’s metrics to remain weaker than pre-pandemic levels; specifically, estimating FFO to debt to be between 35% and 40% and financial leverage to fall between 1.8x and 2.4x in 2023.

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