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Prospect News home > News index > List of issuers B > Headlines for B/E Aerospace Inc. > News item |
S&P cuts B/E Aerospace
Standard & Poor's said it lowered its long-term corporate credit rating to BB+ from BBB- on B/E Aerospace Inc. S&P also lowered the issue-level rating on the company's senior unsecured notes to BB from BB+ and assigned a recovery rating of 5, indicating expectations of modest (10%-30%) recovery in a payment default scenario.
At the same time, S&P affirmed its BBB- issue-level rating on the company's senior secured credit facility and assigned a recovery rating of 2, indicating expectations of substantial (70%-90%) recovery in a payment default scenario.
The outlook is stable.
"The downgrade reflects difficult conditions for commercial aviation suppliers due to the widespread global recession, resulting in materially lower air traffic, airline capacity cuts, weak orders for new aircraft, and uncertain airplane delivery prospects, which have adversely affected B/E Aerospace's sales and earnings," said S&P credit analyst Betsy R. Snyder in a news release.
"As a result, the company's key credit protection measures have fallen below levels appropriate for the previous (investment-grade) rating, and we believe they are unlikely to rebound significantly in the near term."
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