S&P affirms TransDigm

Standard & Poor's said it affirmed its ratings on TransDigm Inc., including the B+ corporate credit and senior secured debt ratings and B- subordinated debt rating.

The outlook is stable.

The affirmation takes into account increased leverage to fund shareholder and deferred compensation payments, offset by good profitability, good cash flow generation and a recovery in the commercial aerospace market, S&P said.

The ratings for TransDigm reflect a relatively modest scale of operations (around $350 million revenues), cyclical and competitive pressures in the commercial aerospace industry and a highly leveraged balance sheet, the agency said.

S&P said the ratings also incorporate the firm's leading positions in niche markets and very strong profit margins.

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