AAR Corp. To Divest Cargo Systems Businesses; 'BB' Rating On Watch Positive

AAR Corp. recently announced plans to sell its Telair Cargo Group to TransDigm Inc. for $725 million and use the proceeds for debt reduction, shareholder rewards, and acquisitions. We are placing our 'BB' corporate credit rating on the aviation services provider on CreditWatch with positive implications as we believe the transaction could result in an improved financial risk profile. We could raise the rating if we believe management will use the proceeds to primarily reduce debt, resulting in a ratio of debt to EBTIDA below 2x and funds from operations to debt above 30%, and is committed to maintaining these improved levels. WASHINGTON D.C. (Standard&Poor's) Feb. 24, 2015--Standard&Poor's Ratings Services today placed its ratings on AAR

...+ AAR Corp. recently announced plans to sell its Telair Cargo Group to TransDigm Inc. for $725 million and use the proceeds for debt reduction, shareholder rewards, and acquisitions. + We are placing our '##' corporate credit rating on the aviation services provider on CreditWatch with positive implications as we believe the transaction could result in an improved financial risk profile. + We could raise the rating if we believe management will use the proceeds to primarily reduce debt, resulting in a ratio of debt to EBTIDA below 2x and funds from operations to debt above 30%, and is committed to maintaining these improved levels. WASHINGTON D.C. (Standard & Poor's) Feb. 24, 2015--Standard & Poor's Ratings Services today placed its ratings on AAR Corp., including its '##' corporate credit rating, on CreditWatch with positive implications. The CreditWatch placement follows AAR's announcement that it plans to sell its Telair Cargo Group to TransDigm Inc. for $725 million and use the net...

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