Moody's affirms Wesco

Moody's Investors Service said it affirmed Wesco Aircraft Hardware Corp.'s existing B2 corporate family rating and probability of default rate, but revised the outlook to positive from stable.

The agency said that the action recognizes strong growth in revenues and earnings Wesco achieved in fiscal 2007 as well as expectations that underlying demand for the company's logistical services in support of build rates in the aerospace industry should lead to further expansion in Wesco's volumes over the next few years.

Nonetheless, growth has required re-investment in working capital and purchase commitments which has constrained conversion of earnings into free cash flow, trends which Moody's said it expects to continue.

Moody's noted that the B2 corporate family rating continues to recognize the company's modest-scale as well as its ongoing debt levels and leverage following its acquisition.

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