S&P affirms TransDigm notes

Standard & Poor's said it affirmed its B- rating on TransDigm Inc.'s 7.75% subordinated notes due 2014, which are being increased $250 million, to a total of $525 million.

The new notes will be issued via SEC rule 144A with registration rights, the agency said, noting that the proceeds from the new notes and bank borrowings will be used to finance the pending $430 million acquisition of Aviation Technologies Inc. by TransDigm's parent, TransDigm Group Inc. (not rated).

The corporate credit rating is B+ and the outlook is stable.

"The ratings on TransDigm reflect a highly leveraged balance sheet, the cyclical and competitive pressures of the commercial aerospace industry, an active acquisition program and a relatively modest-scale of operations [around $550 million revenues pro forma for the acquisition], but incorporate the firm's leading positions in niche markets and very strong profit margins," said S&P credit analyst Christopher DeNicolo.

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