Moody's affirms Hexcel

Moody's Investors Service said it affirmed Hexcel Corp.'s corporate family and Probability of default ratings of Ba3 and the B1 rating of Hexcel's subordinated notes, but raised the rating on the secured bank credit facilities to Baa3 from Ba1.

The outlook remains stable.

Because about $96 million of the term loan portion of the credit facilities was repaid, recovery expectations are higher under Moody's loss given default methodology and the rating on the credit facilities was raised one notch to Baa3, the agency said.

According to Moody's, the Ba3 corporate family and probability of default ratings balance the company's modest-scale, significant market presence, strong credit metrics and favorable growth prospects with the ongoing investment phase in its carbon fiber capacity, which constrains prospects for near term free cash flow.

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