Moody's rates MB Aerospace loan B2

Moody's Investors Service said it assigned a provisional B2 corporate family rating to MB Aerospace Holdings II Corp.

The agency also said it assigned a provisional B2 rating to the proposed $255 million senior secured first-lien term loan and $50 million senior secured first-lien revolving credit facility.

The outlook is stable.

The ratings reflect both the fact that the acquisition of Asian Compressor Technology Services Co. Ltd. has not yet taken place and that Moody's has only received marketing term sheets rather than a draft of the senior facilities agreement, the agency explained.

The ratings reflect the company's leading position as a tier 1 supplier of components for aero-engines, good engine platform diversification with exposure to more than 80 platforms with a high share of sole-supplier position on these platforms, sound industry prospects with strong growth and high barriers to entry, Moody's said.

The ratings are constrained by its limited scale, high leverage with an adjusted debt-to-EBITDA ratio of about 6x and the capital intensity of its business model, the agency said.

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