S&P puts Spirit AeroSystems on negative watch

Standard & Poor's said it placed its ratings, including the BB- corporate credit rating and BB- senior secured debt rating, on Spirit AeroSystems Inc. on CreditWatch with negative implications.

The CreditWatch follows a strike at Boeing Co.'s commercial aircraft operations, which account for almost all of Spirit's revenues. A prolonged strike could result in a material deterioration in revenues, earnings and cash flows.

S&P said this might be mitigated somewhat by Spirit's strategic importance to Boeing and fairly good near-term liquidity. Spirit produces structures for almost all Boeing commercial aircraft, including the entire fuselage for the popular 737 series, and is Boeing's largest nonengine supplier.

Liquidity is supported by substantial cash on hand, a $175 million revolving credit facility and a $150 million vendor note. There are no material near-term debt maturities.

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