S&P ups Esterline

Standard & Poor's said that it raised the corporate credit rating on Esterline Technologies Corp. to BB+ from BB.

The ratings on the company's debt remain at BB. The recovery rating was revised to 5 from 4, indicating the expectations of a modest (10%-30%) recovery in a payment default scenario.

The outlook is stable.

The upgrade reflects improving credit protection measures resulting from higher revenues, earnings and cash flow, S&P said. These improvements were driven by a strengthening commercial aerospace market, as well as acquisitions.

The upgrade also reflects the view that, although the company will remain acquisitive, it's unlikely to use significant debt to finance future purchases, the agency said.

The ratings on Esterline Technologies reflect the company's exposure to the competitive and cyclical commercial aerospace market, its active acquisition program and modest size compared with some competitors as well as its fairly diversified revenue base and moderate debt leverage, the agency added.

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