S&P trims Kaman view to negative

Standard & Poor’s said that it affirmed its BB+ corporate credit rating on Kaman Corp. and revised its outlook on the company to negative from stable.

“The outlook revision reflects the potential that Kaman’s credit metrics will not return to levels that we consider appropriate for our rating, including a funds from operations (FFO)-to-debt ratio of greater than 25%,” said S&P credit analyst Chris Mooney in a news release.

“Following the proposed debt-financed acquisition of GRW, which comes on the heels of the company’s $45 million debt-financed acquisition of Timken Alcor Aerospace Technologies in October 2015, we expect that Kaman's FFO-to-debt ratio will dip below 25% (on a pro forma basis including a full year's worth of earnings) from about 30% as of the last 12 months ended Oct. 2, 2015.”

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