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S&P affirms AAR after add-on
Standard & Poor's said it affirmed the BB rating on AAR Corp.'s unsecured debt after a proposed $125 million add-on to its 7¼% senior unsecured notes due 2022.
The 4 recovery rating indicates 30% to 50% expected default recovery.
The issue is now $300 million.
The company's corporate credit rating also was affirmed at BB.
The outlook is stable.
The proceeds will be used to pay down revolver borrowings, therefore leverage will be essentially unchanged, S&P said.
The ratings reflect the company's well-established positions in niche markets, participation in the cyclical and competitive commercial aerospace industry, continued pressures on defense spending and adequate liquidity, the agency said.
The company's business risk profile is considered fair and its financial risk profile is significant, S&P said.
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