S&P cuts Kaman

S&P said it lowered Kaman Corp.’s issuer rating to BB- from BB.

Kaman agreed to acquire Parker-Hannifin's Aircraft Wheel & Brake division.

“The downgrade reflects debt to EBITDA briefly rising above 4x before settling between 3x and 4x thereafter. We expect Kaman to fund the $440 million acquisition with its revolving credit facility, significantly increasing debt. While we view the acquisition as a positive for the business, the increased debt weakens credit ratios considerably. We previously expected debt to EBITDA to be 2x-2.4x in 2022 and 2023, but now expect it to be 4x-4.4x in 2022 and drop to 3.5x-3.9x in 2023 as Kaman actively works to decrease leverage,” S&P said in a press release.

The outlook is stable.

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