Moody's rates Mid-Western Aircraft loans B1

Moody's Investors Service said it assigned a B1 rating to Mid-Western Aircraft Systems Inc.'s new $875 million senior secured credit facilities, consisting of a $700 million term loan due 2011 and a $175 million revolving credit facility due 2010. At the same time, Moody's said it assigned a senior implied rating of B1 to the company.

The outlook is stable.

Proceeds from the new term loan will be used to partially fund the acquisition of commercial aircraft aerostructure manufacturing facilities from The Boeing Co. by Onex Partners LP for $920 million, the agency added.

Moody's said the ratings reflect the company's initial moderately leveraged capital structure as well as the benefit of its established position as a principal supplier of aerostructures. However, the ratings also reflect the concentration of the company's revenue base, which will be heavily influenced by demand for Boeing aircraft, and its risk as a stand-alone entity.

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