S&P gives Hexcel loan BBB-

Standard & Poor's said it assigned its BBB- issue-level rating to Hexcel Corp.'s (BB/stable) proposed senior secured credit facilities, two notches above the corporate credit rating on the company.

In addition, the agency said it assigned a 1 recovery rating to both tranches (the $100 million revolving credit facility due 2013 and the $200 million term loan due 2014), indicating an expectation of very high recovery of principal and prepetition interest in the event of a payment default.

S&P noted that the new facilities replace Hexcel's current revolving credit facility, which matures March 2010, and term loan tranches B and C, which mature in 2012.

The agency added that it affirmed the B+ issue-level rating on Hexcel's outstanding $225 million 6.75% senior subordinated notes.

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