(Alliance News) - Moody's Investors Service on Monday assigned a Ba2 rating to BBA Aviation PLC's new senior unsecured notes due 2028.
Moody's assigned a Ba2 rating to the proposed USD650 million senior unsecured notes due 2028 to be issued by BBA US Holdings Inc, a unit of the company. The ratings agency also affirmed the Ba2 corporate family rating and Ba2-PD probability on default rating of BBA, and the Ba2 rating on the existing USD500 million senior secured noted due 2026.
The outlook on both BBA and unit BBA US Holdings has been changed to negative from stable.
Moody's said the action reflects the expected completion of the sale of BBA's Ontic division, with the proceeds utilized to partially repay the company's debt facilities and to make a dividend payment to shareholders.
The negative outlook reflects the fact that the rating is weakly positioned with relatively high leverage, and also reflects the risk that further releveraging might occur, the ratings agency added.
"The outlook assumes that BBA's organic growth rates and margins will remain relatively stable, that adequate liquidity is maintained and that there are no changes to the company's financial policies," Moody's said.
BBA Aviation shares were down 0.3% at 304.40 pence each in London on Tuesday morning.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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