Moody’s gives TransDigm loan Ba3, affirms CFR

Moody's Investors Service said it affirmed the ratings, including the B2 corporate family rating and B2-PD probability of default rating, of TransDigm, Inc.

Concurrently, the agency assigned a Ba3 rating to the new $1.54 billion senior secured term loan E due 2022.

Moody's also affirmed the Ba3 rating on the $2,053,000,000 senior secured term loan C due 2020 (downsized from $2,553,000,000) and on the $821 million senior secured term loan D due 2021.

The outlook remains stable.

Moody’s said the B2 corporate family rating reflects TransDigm's high tolerance for financial risk, elevated leverage levels, and a track-record of aggressive debt-financed acquisitions and shareholder distributions. These considerations are partially tempered by the company’s focus on the highly profitable aerospace aftermarkets, the sole-source nature of many of its products and its strong liquidity profile, the agency said.

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