Fitch assigns Arsenal AIC BB-, loan BB+

Fitch Ratings said it assigned a first-time expected BB- long-term issuer default rating to Arsenal AIC Parent LLC, an affiliate of funds managed by Apollo Global Management, Inc. that will acquire Arconic Corp. (ARNC) Fitch also assigned expected BB+/RR2 ratings to Arsenal's planned term loan B.

The outlook is stable.

“Arsenal's BB-(EXP) rating reflects the company's competitive position in the aluminum fabricated product market, improved end-market outlook, considerable operational/product flexibility to accommodate demand shifts, favorable operational and cost improvement initiatives, and elevated post-acquisition leverage profile. Fitch's rating case forecasts EBITDA leverage and coverage metrics both in the mid-3x range, a level commensurate with BB- rating,” Fitch said in a press release.

The loan proceeds will be used to cover a portion of the acquisition costs and refinance ARNC's debt.

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