S&P turns Kaman view to negative

S&P said it revised Kaman Corp.’s outlook to negative from stable and affirmed its BB issuer rating.

Sales of Kaman’s joint programmable fuzes are expected to be lower in 2021 than the agency had forecasted and could lead to results below S&P’s forecast, the agency said.

“Kaman generates a significant portion of its revenue from Safe And Arm Devices (32% of 2020 revenue), which includes JPF sales, to both the U.S. military and foreign customers. Under the new administration, foreign policy has changed and could restrict sales to certain foreign countries,” the agency said in a press release.

The negative outlook reflects the uncertainty around fuze sales, lower demand for commercial aerospace parts and depressed margins, S&P said.

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