S&P rates Moog notes BB

S&P said it assigned its BB issue-level rating and 5 recovery rating to Moog Inc.'s proposed $400 million senior unsecured notes due 2027. The 5 recovery rating mirrors S&P’s expectation for modest (10%-30%; rounded estimate: 15%) recovery in a default scenario. The company expects to use the proceeds to redeem $300 million of unsecured notes due 2022, repay about $90 million of revolver borrowings and pay transaction fees and expenses.

“Our issuer credit rating on Moog reflects its moderate size and good diversity as a supplier of components to the aerospace, defense, industrial, and medical end markets. It also reflects our expectation that the company's credit metrics will remain relatively unchanged and consistent with the current rating over the next few years as it continues to use cash and debt to fund acquisitions and share repurchases,” said S&P in a press release.

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