S&P gives Spirit AeroSystems notes BB

Standard & Poor's said it assigned its BB issue-level rating to Spirit AeroSystems Inc.'s proposed $300 million senior unsecured notes due 2017, the same as the corporate credit rating.

The recovery rating is 3, the agency noted.

S&P noted that the company will use the proceeds to repay $150 million of borrowings under the secured revolving credit facility and for general corporate purposes.

"The ratings on Spirit AeroSystems reflect its participation in the competitive and cyclical commercial aerospace industry, which is now in a downturn; the company's reliance on one customer (Boeing Co.) for about 85% of sales; significant near-term costs related to development of Boeing's 787 aircraft; and the large up-front investment required to participate on new programs," said S&P credit analyst Roman Szuper.

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