S&P lifts TransDigm to stable

Standard & Poor's said it affirmed the B+ corporate credit rating on TransDigm Inc., along with the BB- rating and recovery rating of 2 on the company's secured credit facility and B- rating and recovery rating of 6 on its subordinated notes.

The outlook was revised to stable from negative.

The outlook revision is based on an expectation that TransDigm's debt-to-EBITDA ratio will be at or below 5.5x by calendar year-end 2011, S&P said.

The ratings reflect an expectation that the company's strong profit margins, growing earnings and improving commercial aerospace market conditions, combined with contributions from recently acquired McKechnie Aerospace Holdings Inc., will enable TransDigm to reduce leverage and restore credit measures to levels more appropriate for the rating during the next 12 to 18 months, the agency said.

The company's business risk profile is considered fair, stemming from its participation in the cyclical and competitive commercial aerospace industry, partly offset by efficient operations, high profit margins and good product diversity, S&P said.

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