Moody’s ups TransDigm, loans, notes

Moody's Investors Service said it upgraded the ratings of TransDigm Inc., including the corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD, senior secured credit facilities to Ba2 from Ba3 and senior subordinated notes to B3 from Caa1.

The outlook remains stable.

Moody’s said the upgrade reflects TransDigm's growing size and scale and considers the company's strong competitive positioning within its niche markets as evidenced by industry-leading margins.

The upgrade also acknowledges TransDigm's demonstrated ability to operate with a highly leveraged balance sheet and incorporates a continuation of high leverage going forward.

The agency anticipates that TransDigm's track record of solid execution along with favorable industry fundamentals will continue to support robust earnings and cash flow growth and a strong liquidity profile. This is expected to provide the support for the company's leveraged capital structure.

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