S&P: Firth Rixson loan B+

Standard & Poor's said it assigned a B corporate credit rating to Firth Rixson (Cyprus) Ltd., along with a B+ rating and 2 recovery rating to the proposed $800 million secured credit facility, which consists of a $120 million revolver and a $680 million term loan.

The outlook is stable.

The borrowers on the new facility will be indirect subsidiaries, JFB Firth Rixson Inc. and FR Acquisitions Corp. (Europe) Ltd. U.K. The 2 recovery rating indicates 70% to 90% expected recovery in a default.

The ratings reflect expectations that debt-to-EBITDA will remain high after the proposed transaction with only modest improvement likely in the next 12 months because of limited free cash flow, S&P said.

The agency said it believes revenues and earnings will show solid growth over the next year because of the strength in commercial aerospace market and the contribution from new projects.

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