S&P upgrades Hexcel

S&P said it raised its corporate credit rating on Hexcel Corp. to BBB from BBB-. The outlook is stable.

At the same time, S&P raised its issue-level ratings on the company's unsecured notes to BBB from BBB-.

“The upgrade reflects Hexcel Corp.'s good credit metrics and strong cash flows over our forecast period. We now believe the company's future credit ratios won't differ materially from this forecast, based on our current assessment of management's financial policy,” said S&P credit analyst Tennille Lopez in a news release.

S&P said it believes that the company will direct its excess cash toward small tuck-in acquisitions and shareholder rewards without meaningfully increasing debt leverage beyond 2x.

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