S&P rates Aeroflex

Standard & Poor's said it assigned an issue-level rating of BB-, one notch higher than the unchanged B+ corporate credit rating, to Aeroflex Inc. The outlook is stable.

The ratings action follows the company's completion of an $800 million senior secured debt refinancing comprised of a $75 million revolving credit facility and a $725 million term loan B, the agency said. S&P said it also assigned a recovery rating of 2 to the new debt, indicating its expectation of substantial recovery for lenders in the event of a payment default.

The agency said it withdrew all other existing issue-level and recovery ratings.

"We expect Aeroflex's leverage to continue improving toward the 4x area over the next four quarters, reflecting our anticipation of moderately higher revenues and margins, as the company capitalizes on its recent acquisitions," said S&P credit analyst Joseph Spence in a news release.

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