S&P rates TransDigm notes B-, loan BB-

Standard & Poor's said it affirmed its ratings on TransDigm Inc., including the B+ corporate credit rating. The outlook is stable.

The agency also affirmed the BB- issue-level rating on the existing senior secured credit facility. The recovery rating of 2 remains unchanged.

At the same time, the agency said it assigned a B- issue rating and a 6 recovery rating to the proposed $500 million subordinated notes. The 6 recovery rating indicates an expectation for negligible recovery.

The agency also assigned a BB- issue rating and 2 recovery rating to a $150 million term loan B-2.

On Oct. 3, TransDigm announced plans to pay a dividend of at least $650 million and up to $850 million by Dec. 31, funded with new debt.

"The additional debt will result in a moderate deterioration in credit ratios, but they will remain within our expectations for the rating," said S&P credit analyst Christopher Denicolo in a news release.

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