S&P ups Triumph Group, rates notes BB-

Standard & Poor's said it affirmed its BB corporate credit rating on Triumph Group Inc. The outlook is positive.

At the same time, S&P raised its issue rating on the company's existing $350 million 8 5/8% notes due 2018 to BB- from B+. S&P also revised the recovery rating to 5 from 6 because of a reassessment of the expected emergence enterprise value for the company, which resulted in improved recovery prospects in a default scenario. The 5 recovery rating indicates S&P's expectations of a modest recovery (10%-30%) in the event of payment default.

S&P also assigned a BB- issue rating and 5 recovery rating to the proposed $350 million senior notes due 2021 and affirmed the B+ issue rating and 6 recovery rating on Triumph's subordinated debt, indicating expectations of negligible (0%-10%) recovery.

"Our ratings on Triumph Group reflect our expectations that the company will continue to use its free cash flow to reduce its debt and pension plan obligations, which we believe will lead to an improvement in key credit metrics over the next 12 months," said S&P credit analyst Christopher DeNicolo in a news release.

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