Moody's cuts some Hexcel loans to Ba1

Moody's Investors Service said it affirmed Hexcel Corp.'s corporate family and probability-of-default ratings of Ba3 and its $225 million senior subordinated notes at B1 (LGD5, 72%).

The agency lowered the $125 million secured revolving credit facility and $168 million secured term loan to Ba1 (LGD2, 17%) from Baa3 (LGD2, 14%), reflecting a proposed increase to the term loan.

The larger amount of secured bank debt, while beneficial to the company's liquidity profile, caused recovery expectations on the bank debt to decline as it will represent a higher proportion of liabilities in downside scenarios, according to the agency. The B1 rating on the company's subordinated notes was not affected.

The outlook remains stable.

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