Moody’s revises Triumph to stable

Moody's Investors Service said it affirmed the debt ratings of Triumph Group, Inc., including the Ba2 corporate family rating and Ba3 senior unsecured ratings, and changed the outlook to stable from positive.

The speculative grade liquidity rating is unchanged at SGL-2.

Moody’s said the outlook change reflects concerns around a weakening of the quality of Triumph's platform portfolio with expected declines in production rates of several key programs. The agency believes there is meaningful risk for additional cuts on these programs, particularly the 747 (Triumph's largest platform by backlog). This could result in forward loss charges and reduced earnings and cash flow growth.

Ongoing weakness in military sales, execution risk relating to Gulfstream's G280/G650 wing work (recently assumed from Spirit) and the likelihood of a more aggressive share buyback program also temper the rating, Moody’s said.

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