Moody's: TransDigm loan at Ba2

Moody's Investors Service said it affirmed TransDigm Inc.'s B1 corporate family and probability of default ratings, Ba2 (LGD2, 23% from LGD2, 24%) $245 million senior secured revolving credit facility due December 2015and B3 (LGD5, 79% from LGD5, 80%) $1.6 billion of senior subordinated notes due 2018.

Moody's said it assigned a Ba2 (LGD2, 24%) rating to the new $1.55 billion senior secured term loan due 2017.

The outlook is negative.

The ratings reflect TransDigm's record of revenue growth and operating profitability driven by its wide collection of niche products and its high margin aftermarket focus, product position on most aircraft and the proprietary and sole sourced nature of most of its product offering, the agency said.

The ratings also consider TransDigm's strong operating performance, robust margins and cash generation, which will enable the company to service its increased debt level from the sizeable December 2010 acquisition of McKechnie Aerospace Holdings, Inc. and reduce leverage near-term, Moody's said.

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