Moody’s lifts Advanced Integration, loans

Moody's Investors Service said it upgraded Advanced Integration Technology LP’s corporate family rating to B1 from B2, probability of default rating to B2-PD from B3-PD and the senior secured revolving credit facility and term loan to B1 from B2.

The outlook is stable.

Moody’s said the upgrade follows Advanced Integration’s decision to reduce a pending distribution to shareholders by roughly $90 million and reflects a more conservatively capitalized balance sheet with leverage expected to remain below 3.25 times.

The ratings reflect the company's modest size, high degree of customer concentration, and the cyclical nature of Advanced Integration’s OEM customer base.

Notwithstanding, Advanced Integration’s relatively small scale, the agency said it believes the company is well-positioned to benefit from the growing use of automation in commercial aerospace (its largest segment) as OEM and tier one customers seek to boost throughput and reduce costs in the face of record multi-year backlogs.

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