S&P might upgrade Aeroflex

Standard & Poor's said it placed all Aeroflex Inc.'s ratings, including the B corporate rating, on CreditWatch with positive implications.

Aeroflex is seeking to raise $250 million via an initial public offering. The company expects to use $175 million of the proceeds to redeem a portion of its outstanding $225 million 11¾% senior notes and a portion of its $168 million senior subordinated term loans.

The proposed debt reduction as well as Aeroflex's current expected operating trajectory are positives for credit metrics, S&P said. Higher revenues and profitability and improved adjusted debt-to-EBITDA also prompted the placement.

The debt-to-EBITDA ratio was in the high-5 times area as of the September quarter end.

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