Moody’s rates LMI loan Ba2, notes B3

Moody's Investors Service said it affirmed the ratings, including the B2 corporate family rating and the B2-PD probability of default rating of LMI Aerospace, Inc.

Concurrently, the agency assigned a Ba2 to the company's proposed $90 million senior secured revolving credit facility due 2019 and a B3 to the new $250 million senior secured second-lien notes due 2019.

The outlook remains stable.

Proceeds from the transaction will be used to refinance LMI's existing debt.

Ratings on the existing $125 million revolver due 2017 and the existing term loan due 2018 are expected to be withdrawn upon completion of the transaction.

Moody’s said the ratings favorably reflect LMI's long-term agreements and sole source supplier status for many of its platforms which provide revenue and earnings visibility as well as the growth opportunities stemming from Boeing and Airbus's historically high production backlog.

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