Fitch rates ASPropulsion notes B, Aero Invest floaters B-

Fitch Ratings said it assigned ASPropulsion Capital BV's €200 million of 9.625% senior notes due 2013 a B rating. The agency gave Aero Invest 1 SA's €375 million floating-rate senior PIK notes due 2015 a B- rating.

The agency has also assigned Avio SpA ratings of senior unsecured B+ with a stable outlook and short-term B. Its senior secured debt is assigned a BB rating.

Fitch said the senior unsecured B+ rating reflects Avio's established market position within industry, globally recognized technical expertise, long-standing client relationships, strategic importance to the Italian government and the long-term nature of the projects in which it participates.

However, these are offset by the company's relatively modest size, leveraged capital structure, high exposure to the cyclical civil aerospace industry, heavy customer concentration and the risk of major contract reductions or delays, Fitch said.

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