S&P rates Standard Aero

Standard & Poor's said it assigned its B+ long-term corporate credit rating to Standard Aero Holdings Inc. and assigned its B+ rating to Standard Aero's proposed $260 million eight-year senior secured term loan B and its $50 million six-year senior secured revolving credit facility. The recovery rating is 2.

S&P also assigned its B- rating to Standard Aero's $265 million senior subordinated notes.

The outlook is stable.

Proceeds will be used to finance the acquisition of Standard Aero and its subsidiaries for $746 million.

"The ratings on Standard Aero reflect the high leverage of the borrower following the acquisition, competition provided by engine manufacturers, the reliance on a few key contracts, and the execution risk surrounding the company's plan to expand its commercial business," said S&P credit analyst Kenton Freitag. These factors are partially offset by Standard Aero's solid service reputation, its success with existing military contracts, and the stability provided by its military division.

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