Moody’s downgrades MB Aerospace

Moody’s Investors Service said it downgraded MB Aerospace Holdings II Corp.’s corporate family rating and the rating on its $255 million senior secured first-lien term loan due 2025 and $50 million senior secured revolving credit facility due 2023 to B3 from B2.

Moody’s also downgraded the probability of default rating to B3-PD from B2-PD.

“The B3 corporate family rating (CFR) reflects the company’s: (1) limited scale; (2) high Moody’s-adjusted leverage of 8.4x at September 2019; (3) the high degree of complexity of new engine parts, amplified by the unprecedented ramp up in new jet engine production, which continues to affect profitability; (4) capital intensive business model, only partly mitigated by the high cash conversion of its aftermarket subsidiary Asian Compressor Technology Services (ACTS Taiwan); (5) need to remain a consolidator in the industry, therefore potential for debt-financed acquisitions; and (6) ongoing free cash outflows and weak liquidity,” said Moody’s in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.