Moody's may upgrade Esterline

Moody's Investors Service said it placed Esterline Technologies Corp.'s Ba3 corporate family rating and B1 senior subordinated notes on review for possible upgrade in response to observed strengthening in the company's credit profile and the expectation of continued strong financial performance for the intermediate term.

The ratings review will focus on the ultimate application of funds raised from Esterline's new term loan offering, confirmation of continued growth and improvement in operating conditions at least through the first quarter of 2006 and Moody's assessment of event risk going forward with respect to the size and pace of levered acquisitions, the agency said.

Moody's said it will assess the probability of continued strong financial results including stable margins, strong cash flows and modest leverage in light of continued expected acquisition activity.

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