S&P rates Synchronous loan B

Standard & Poor's said it assigned its B corporate credit rating to Synchronous Aerospace Group.

The outlook is stable.

At the same time, S&P assigned its B rating and 3 recovery rating to the company's proposed $95 million senior secured credit facility, indicating expectations of a meaningful (50%-70%) recovery in the event of payment default.

S&P said the ratings on Synchronous Aerospace reflect a highly leveraged financial profile, a small revenue base with limited customer and program diversity, and the cyclical and competitive nature of the commercial aerospace market.

These factors are offset somewhat by currently strong demand for commercial aircraft and long term agreements with customers.

The proceeds from the new credit facility will be used to partially finance the acquisition of the company by an affiliate of Littlejohn & Co. LLC, a private equity firm.

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