S&P rates Spirit AeroSystems loan BB+

Standard & Poor's said it assigned its BB+ bank loan rating and 1 recovery rating to Spirit AeroSystems Inc.'s (BB-/Watch positive) proposed, amended and restated $983 million bank financing.

The agency said that the financing consists of a $400 million revolving credit facility, increased from $175 million and a $583 million term loan B following a $100 million pay down from proceeds from a planned IPO.

S&P added its other ratings on Spirit remain on CreditWatch with positive implications, where they were placed on July 6, noting that it expects to raise the corporate credit ratings on Spirit to BB from BB- and assign a positive outlook upon completion of the IPO of up to $500 million of common stock.

According to the agency, the ratings on Spirit reflect participation in the cyclical and competitive commercial aerospace industry, reliance on one customer for about 90% of sales and significant near-term expenditures related to development of Boeing's new 787 midsize airliner.

Those factors are offset somewhat by the company's position as the largest independent supplier of structures for commercial aircraft and substantial customer advances to fund most of the 787 development costs, the agency noted.

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