S&P gives TransDigm notes B-

Standard & Poor's said it assigned its B- rating to TransDigm Inc.'s proposed $275 million subordinated notes due 2014.

The corporate credit rating on TransDigm is B+ and the outlook is stable, the agency said.

"The ratings for TransDigm reflect a highly leveraged balance sheet, cyclical and competitive pressures in the commercial aerospace industry and a relatively modest-scale of operations, but incorporate the firm's leading positions in niche markets and very strong profit margins," said S&P credit analyst Christopher DeNicolo.

The company's high profitability, with operating margins over 40% before depreciation and a recovery in the commercial aerospace aftermarket are expected to support good free cash flow generation in the intermediate term, the agency added.

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