Moody's rates Ducommun loan B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Ducommun Inc., along with a B2 rating to the company's proposed $340 million senior secured credit facility and a SGL-2 speculative grade liquidity rating.

The proceeds will be used to refinance existing indebtedness.

The outlook is stable.

The ratings balance Ducommun's small size, comparatively low margins for an aerospace supplier and exposure to cyclical end-markets of commercial aircraft against a moderately leveraged balance sheet, Moody's said.

The agency said it recognizes Ducommun's content on a number of key commercial aerospace and defense platforms, the agency said, as well as a favorable operating environment.

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