S&P trims Spirit AeroSystems, rates notes BB-

S&P said it assigned a BB- and a 3 recovery rating to Spirit AeroSystems Inc.’s proposed second-lien secured notes due 2025.

The agency also downgraded Spirit to BB- from BB and removed the ratings from CreditWatch with negative implications, where they were placed on March 26.

S&P cited the effect of the coronavirus global air travel and the demand for aircraft, which is causing Spirit’s customers to cut production.

“In line with the issuer credit rating, we lowered the issue rating on Spirit’s first-lien secured debt to BB+ from BBB- and removed it from CreditWatch. The 1 recovery rating is unchanged,” said S&P in a press release.

“Finally, we lowered the issue-level rating on the company’s unsecured debt to BB- from BB. This rating remains on CreditWatch negative and we will likely lower it to B after the proposed transaction closes. At that time, we will likely revise the recovery rating to 6 from 3,” the agency said.

The outlook is negative.

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