Moody's cuts some Hawker Beechcraft notes to Ca

Moody's Investors Service said it lowered Hawker Beechcraft Acquisition Co., LLC's probability-of-default rating to Ca from Caa2.

The company's Caa2 corporate family rating, B3 rating (LGD2, 27%) on secured bank facilities, Ca rating (LGD4, 66%) on subordinated debt and SGL-3 speculative grade liquidity rating remain unchanged.

The outlook is developing.

The unsecured pay-in-kind notes were lowered to Ca (LGD5, 70%) from Caa3 (LGD5, 78%), and some ratings on unsecured fixed-coupon notes were placed under review for downgrade.

The actions follow the company's tender offer to use $100 million of cash to purchase portions of its outstanding unsecured fixed-coupon notes, unsecured PIK notes and subordinated notes at substantial discounts, Moody's said.

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