S&P cuts TransDigm facility

Standard & Poor's said it lowered its issue rating on TransDigm Inc.'s $3.4 billion first-lien credit facility, which now consists of a $310 million revolver and $3.1 billion in term loans due 2017 and 2020, to B from B+.

The recovery rating was revised to 3 from 2.

The corporate credit rating is unaffected. The recovery and issue-level ratings on the existing subordinated notes remain unchanged.

S&P said the first-lien downgrade follows the $200 million increase of TransDigm's first-lien term loan to $900 million from $700 million.

As a result, the agency lowered its recovery expectations for the first-lien lenders in its payment default scenario.

TransDigm also reduced the size of its senior subordinated notes by a corresponding amount, but the downsizing doesn't affect S&P's subordinated recovery expectations, given that it already believed lenders would recover little to nothing in a payment default.

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