Moody's boosts Hexcel

Moody's Investors Service said it upgraded the ratings of Hexcel Corp., including the corporate family rating to B1 from B2, in response to continued strengthening in the company's credit profile owing to improved recent operating results and the expectation of continued strong financial performance for the intermediate term.

The outlook is stable.

Moody's said the ratings upgrades reflect the company's improved financial performance in fiscal 2005 and expectations for further improvement in 2006 due to strengthening demand in key market sectors in which the company operates, particularly in commercial aerospace.

However, ratings also consider thin projected levels of free cash flow due to continued investments the company is expected to undertake to support the expansion of its business during the on-going recovery in the commercial aircraft OEM supply sector, the agency noted.

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