S&P affirms Kaman

S&P said it affirmed its BB+ corporate credit rating on Kaman Corp.

The outlook is stable.

The agency said the affirmation reflects an expectation that Kaman's credit metrics will remain consistent with the current rating, as the company's revenue and earnings grow and cash flow improves, offset by potential debt-financed bolt-on acquisitions.

S&P said it expects a ratio of operating cash flow to debt of around 30% to 35% in 2018 due in part to customer advances the company received related to the Joint Programmable Fuze program, but then slightly weakening to 25% to 30% in 2019 as the advances are worked off and inventory needs increase for new industrial distribution contracts.

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