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HOME :: RESEARCH :: CREDIT :: NEWS:: OCT 2007

ARINC's corporate credit rating cut to 'B' on acquisition by Carlyle Group - S&P


 Standard & Poor's (NYSE:MHP) Ratings Services said it has lowered its ratings on ARINC Inc, including lowering the corporate credit rating to 'B' from 'BB', to reflect a significant deterioration in credit protection measures due to the large amount of debt used to finance the just-completed acquisition of ARINC by the Carlyle Group.

The ratings agency said the outlook is stable.

S&P withdrew its bank loan and recovery ratings on the company's existing 230 mln usd credit facility, which was repaid.

It expects the company to use modest free cash flows to reduce debt, which should result in a steady improvement in credit protection measures, but added these measures are likely to remain weak for the next few years.

read entire article on CNN money

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