S&P ups Hexcel

Standard & Poor's said that it raised the corporate credit rating on Hexcel Corp. to BB+ from BB and the issue-level rating on the company's $75 million of senior subordinated notes to BB+ from B+. S&P revised the recovery rating to 4 from 6.

The outlook is stable.

The ratings on Hexcel reflect an improvement in the company's financial profile, which has benefitted from strong earnings growth, as well as debt reduction over the past year, the agency said.

The ratings consider the expectation that key credit metrics will remain above average for the rating over the next two years, the agency added. The ratings on Hexcel reflect its participation in the competitive and cyclical commercial aerospace industry and the company's need to make significant investments in additional carbon fiber production to support increased demand of newer widebody planes.

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