Moody’s lowers Wesco Aircraft

Moody’s Investors Service said it downgraded its ratings for Wesco Aircraft Holdings, Inc., including the company’s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD, as well as the ratings for its senior secured notes to Caa1 from B3 and senior unsecured notes to Caa3 from Caa2. The outlook is negative.

“The downgrades reflect Moody’s expectation that disruptions from the coronavirus crisis will create earnings headwinds for Wesco’s commercial aerospace end-markets, which represent about two-thirds of total company sales,” said Moody’s in a press release.

“Wesco’s credit metrics are already weakly positioned, with debt-to-EBITDA in excess of 8x, and Moody’s expects earnings pressures from the coronavirus will result in further across-the-board weakening of Wesco’s financial profile, the agency said.

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