S&P: Synchronous view negative

Standard & Poor's said it revised the outlook on Synchronous Aerospace Group to negative from stable and affirmed the B long-term corporate credit rating.

The outlook revision was based on lower-than-expected earnings and very limited liquidity, the agency said.

Ratings 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 supplier industry, S&P said.

These factors are offset somewhat by a record order backlog of commercial airplanes and long-term customer agreements, the agency noted.

Leverage is very high, the agency said, with a debt-to-EBITDA ratio of about 8.5x.

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