AAR Corp. Outlook Revised To Positive From Stable On Improved Credit Metrics; 'BB' Rating Affirmed

AAR Corp. benefits from recovering commercial aerospace demand, improving margins and credit measures. While the company maintained a very conservative financial policy through the COVID-19 pandemic, we anticipate it will pursue more shareholder returns and acquisitions. Therefore, we revised our outlook to positive from stable and affirmed our 'BB' issuer credit rating. The positive outlook reflects that credit metrics could remain strong if AAR maintains a more conservative financial policy than we assume. NEW YORK (S&P Global Ratings) Feb. 11, 2022—S&P Global Ratings today took the rating actions listed above. The positive outlook on AAR reflects that credit metrics have improved since weakening significantly in 2020, due to better earnings, continued cash flow generation, and a conservative financial policy. We

...February 11, 2022 - AAR Corp. benefits from recovering commercial aerospace demand, improving margins and credit measures. - While the company maintained a very conservative financial policy through the COVID-19 pandemic, we anticipate it will pursue more shareholder returns and acquisitions. - Therefore, we revised our outlook to positive from stable and affirmed our '##' issuer credit rating. - The positive outlook reflects that credit metrics could remain strong if AAR maintains a more conservative financial policy than we assume. NEW YORK (S&P Global Ratings) Feb. 11, 2022--S&P Global Ratings today took the rating actions listed above. AAR's credit metrics will likely remain strong in 2022. Revenue and earnings declined significantly in fiscal year 2020 (ended May 31) because of the pandemic's impact on air travel. Commercial aerospace maintenance, repair, and overhaul (MRO) and parts sales accounted for about 60% of pre-pandemic revenue. This decline, along with the company drawing...

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