AAR Corp. Outlook Revised To Stable From Negative On Improved Margin And Good Cash Flow Generation, 'BB' ICR Affirmed

The coronavirus pandemic's effect on AAR Corp.'s credit metrics will likely be less significant than we previously expected. Therefore, we are revising our outlook on AAR to stable from negative and affirming our 'BB' issuer credit rating. The stable outlook reflects our expectation that the company's credit metrics will remain appropriate for the current rating supported by its improved margins and good free cash flow generation. NEW YORK (S&P Global Ratings) Feb. 16, 2021—S&P Global Ratings today took the rating actions listed above. While there is still some uncertainty around the recovery in the demand for commercial aircraft parts and MRO services, the stable outlook on AAR reflects that its credit metrics have improved and now have some cushion at

...February 16, 2021 - The coronavirus pandemic's effect on AAR Corp.'s credit metrics will likely be less significant than we previously expected. - Therefore, we are revising our outlook on AAR to stable from negative and affirming our '##' issuer credit rating. - The stable outlook reflects our expectation that the company's credit metrics will remain appropriate for the current rating supported by its improved margins and good free cash flow generation. NEW YORK (S&P Global Ratings) Feb. 16, 2021--S&P Global Ratings today took the rating actions listed above. AAR's credit metrics will likely improve and exceed our previously forecast levels in fiscal year 2021 (ending May 31, 2021). While the demand for the company's maintenance, repair, and overhaul (MRO) services and spare parts (about 63% of 2020 revenue) declined significantly over the last year due to the effects of the pandemic on global air travel, it hasn't fallen by as much as we previously expected. In addition, the demand for...

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