Moody’s alters Spirit AeroSystems view to stable

Moody’s Investors Service said it changed Spirit AeroSystems, Inc.’s outlook to stable from negative.

“The revised outlook reflects Moody’s expectations of more stable operating performance supported by a gradual increase in narrow-body aircraft production rates and a steady, albeit historically lower, production rate for wide-body aircraft. The stable outlook also reflects Moody’s expectations that Spirit will maintain a more balanced portfolio of customers, platforms and end-markets going forward, although the company’s reliance in the 737 MAX will remain pronounced,” the agency said in a press release.

Concurrently, the agency affirmed Spirit’s ratings, including its B2 corporate family rating, its senior secured first-lien notes at Ba2, senior secured first-lien term debt at Ba2 and senior unsecured notes at Caa1. The company’s SGL-3 speculative grade liquidity rating remains unchanged.

However, Moody’s downgraded the senior secured second-lien notes to B2 from B1.“The downgrade of the senior secured second-lien notes to B2 from B1 reflects Spirit’s recent redemption of its senior unsecured notes due 2021 and the resultant reduction in unsecured debt cushion supporting the second lien notes,” the agency said.

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