Moody's lowers TransDigm view to negative

Moody's Investors Service said it affirmed the ratings on TransDigm, Inc., including the B1 corporate family rating, B1-PD probability of default rating, Ba2 senior secured rating and B3 senior subordinated rating.

The outlook also was changed to negative from stable.

Moody's also said it assigned a negative outlook to TransDigm Holdings UK plc.

The outlook revision action follows news that TransDigm intends to acquire Esterline Technologies Corp. for about $4 billion, using a combination of incremental debt and cash on hand, the agency said.

The ratings on Esterline are unchanged, as the debt is expected to be repaid upon closing, Moody's said.

The negative outlook reflects the very substantial size of the acquisition, which will result in a period of elevated execution risk coupled with concerns about the extent of Esterline's proprietary products and the size of their aftermarkets, the agency explained.

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