Moody’s ups Wesco SGL, changes view

Moody's Investors Service said it affirmed the ratings for Wesco Aircraft Hardware Corp., including the B2 corporate family rating, the B3-PD probability of default rating and the B2 rating on the company's senior secured credit facilities.

The agency upgraded the speculative-grade liquidity rating to SGL-3 from SGL-4.

The outlook was changed to stable from negative.

Moody’s said the stable outlook reflects expectations that healthy fundamentals in commercial aerospace and defense markets along with better operational execution will result in moderate earnings growth, improved cash generation and a gradually improving set of credit metrics during fiscal 2019.

The B2 rating balances Wesco's position as a leading distributor of hardware and chemical products to the aerospace and defense industries along with a well-established global distribution network against the company's mixed operating history, variable working capital investment needs and a heavy reliance on a concentrated group of OEM customers, the agency said.

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