S&P gives Ducommun facility B+

S&P said it assigned its B+ issuer credit rating to Ducommun Inc. The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating and 3 recovery rating to the company's proposed first-lien credit facility, which comprises a $100 million revolving credit facility due in 2023 and a $240 million first-lien term loan due in 2025.

The recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default.

“Our rating on Ducommun reflects the company's modest size, the competitive markets in which it participates, and somewhat high customer concentration, coupled with initially high leverage,” S&P said in a news release.

“These factors are partially offset by the company's participation on strong and growing platforms and strong presence in some niche markets.”

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