S&P rates Mid-Western Aircraft loan BB-

Standard & Poor's said it assigned its BB- corporate credit rating to Mid-Western Aircraft Systems Inc. and assigned its BB- bank loan rating and 2 recovery rating to the company's proposed $875 million secured credit facility.

The outlook is stable.

S&P said the ratings on Mid-Western reflect high leverage, participation in the cyclical and competitive commercial aerospace industry, reliance on one customer (Boeing Co.) for essentially all sales, and significant near-term expenditures related to development of Boeing's new 787 midsize airliner and transition costs.

These factors are offset somewhat by the company's position as the largest independent supplier of structures for commercial aircraft and substantial customer advances to fund most of the 787 development costs, the agency said.

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