We expect meaningful revenue growth from AAR Corp. over the next two years as high utilization of aging fleets drives demand for aftermarket parts and service. Further, the successful integration of the Product Support acquisition and the absence of one-time expenses will benefit credit metrics in 2026. Therefore, we affirmed our ?BB? issuer credit rating on the company. At the same time, we affirmed the ?BB? issue-level rating on AAR?s senior unsecured notes. The recovery rating on this debt is ?3?, indicating expectations for meaningful recovery (50%-70%; rounded estimate: 65%). The stable outlook reflects our expectations that funds from operations (FFO) to debt will remain above 20% and free operating cash flow (FOCF) gradually improve as demand within high-margin business
