Fitch cuts TransDigm subordinated debt, rates notes BB

Fitch Ratings said it affirmed the issuer default ratings of TransDigm Group Inc. and TransDigm Inc. at B.

Fitch has also assigned BB/RR1 ratings to TransDigm Inc.'s new senior first-lien secured notes, affirmed the company's senior first-lien secured credit facility at BB/RR1, and downgraded the company's senior subordinated notes to CCC+/RR6.

The outlook is stable.

“The downgrade of the company's senior subordinated notes is a result of TGI's issuance of $3.8 billion of new 6.25% senior secured notes due 2026 to pre-fund the previously announced acquisition of Esterline Technologies Corp. (ESL),” the agency said in a news release.

Fitch said the material increase to the senior first-lien debt level is in excess of its previous assumptions and results in weaker potential recovery for the senior subordinated debt.

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