S&P drops Hexcel outlook to stable

Standard & Poor's said it revised its outlook on Hexcel Corp. to stable from positive.

At the same time, the agency said it affirmed its ratings, including the BB long-term corporate credit rating, on the company.

"The outlook revision reflects deteriorating prospects for commercial aerospace, Hexcel's largest market, caused by a weakening global economy, declining air traffic, capacity cuts by airlines, and reduced availability of previously ample aircraft financing," said S&P credit analyst Roman Szuper.

"Although we expect the company's credit protection measures to remain relatively strong for the rating, the agency said it considers an upgrade unlikely in the current environment."

The agency added that the ratings on Hexcel reflect its participation in the competitive and cyclical commercial aerospace industry, now in an early downturn, and its need to make significant investment in additional carbon fiber capacity to support increased demand from newer, wide-body planes.

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