Moody's assigns ITP Aero, loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Propulsion (BC) Finco Sarl, the indirect parent company of ITP Aero and top holding company of the restricted lending group. Concurrently Moody's gave B2 instrument ratings to the dollar equivalent of a €575 million senior secured term loan and to the dollar equivalent of a €100 million senior secured revolving credit facility. This is the first time that Moody's has assigned ratings to Propulsion (BC).

Propulsion Finco's B2 corporate family rating reflects the group's tier one engine supplier position for complete engine modules with a strong recognition for its R&D and production capabilities from aero engine original equipment manufacturers and good engine program diversification among other factors.

However, the rating is constrained by the company’s focus on Rolls-Royce and wide-body engine platforms, for which the agency said will take longer to recover than demand for narrow-body engine platforms and high pro forma leverage as of the last 12 months ended September of 6x among other issues.

The outlook is stable.

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