Moody's ups Wesco

Moody's Investors Service said it upgraded the corporate family and probability of default rating of Wesco Aircraft Hardware Corp. to Ba3 from B1.

The agency also said it assigned a Ba3 (LGD 3, 49%) rating to the company's new first-lien senior secured bank term loans, consisting of $200 million term loan A due March 2016 and $415 million term loan B due March 2017, along with a $150 million revolving credit facility due March 2016.

The proceeds will be used to refinance the existing bank debt.

Moody's said it intends to withdraw the ratings of Wesco's current first-lien and second-lien bank credit facilities upon the closing of the new bank facilities.

The outlook is stable.

The upgrade reflects good momentum in operating results, as a parts distributor on a diverse platform of commercial and military aircraft, the agency said.

Because of Wesco's record of good execution on its commercial arrangements, Moody's said it anticipates that Wesco will adequately manage its working capital levels while continuing to generate positive free cash flow.

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