S&P ups Spirit AeroSystems

Standard & Poor’s said it raised its corporate credit rating on Spirit AeroSystems Inc. to BB from BB-. The outlook is positive.

At the same time, S&P raised the issue-level ratings on the company’s $1.2 billion senior secured credit facility (which comprises a $650 million revolver and now $535 million term loan) to BBB- from BB+. The recovery rating remains 1, which indicates an expectation for very high (90%-100%) recovery in a payment default scenario.

S&P also raised the issue-level ratings on the company’s unsecured debt to BB- from B+. The recovery rating remains 5, indicating an expectation for modest (10%-30%) recovery in a payment default scenario at the high end of the range.

“The upgrade reflects the improvement in Spirit’s credit ratios in 2014, stemming from better profitability and cash flow. In addition, the company reduced a material risk to future earnings by divesting its Gulfstream wing business,” said S&P credit analyst Chris Denicolo in a news release.

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