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. 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 expect FFO to debt of 63%-68% and FOCF to debt of 20%-25% in 2022. However, we believe
