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Research Update: AAR Corp. Rating Lowered To 'BB' On Longer Expected Impact From Coronavirus Pandemic; Outlook Negative

Published May 28, 2020

5 pages (1990 words) — Published May 28, 2020

Price US$ 225.00 | Buy this Report Now

About This Report

Abstract:

We now believe the impact on AAR Corp.'s earnings and cash flow due to lower air travel from the coronavirus pandemic will be more severe and last longer than we expected. Therefore, we are lowering our issuer credit rating on the company to 'BB' from 'BB+'. The negative outlook reflects further risk to the business if demand is significantly worse than expected, AAR cannot cut costs, or has difficulty generating positive free cash flow. Health and safety The negative outlook on AAR reflects further risk to earnings and cash flow as a result of the coronavirus pandemic. We now expect credit metrics to be weak in fiscal 2021, with debt to EBITDA above 5x and FFO to debt below 20%,

Brief Excerpt:

...Research Update: AAR Corp. Rating Lowered To '##' On Longer Expected Impact From Coronavirus Pandemic; Outlook Negative...

Report Type:

Research Update

Ticker

AIR

Issuer

AAR Corp.

GICS

Aerospace & Defense (20101010)

Sector

Global Issuers

Country

United States

Region

United States

Format:

PDF

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Research Update: AAR Corp. Outlook Revised To Stable From Negative On Improved Margin And Good Cash Flow Generation, 'BB' ICR Affirmed – 2021/02/16 – US$ 225.00

AAR Corp. Outlook Revised To Positive From Stable On Improved Credit Metrics; 'BB' Rating Affirmed – 2022/02/11 – US$ 150.00

Research Update: AAR Corp. Outlook Revised To Positive From Stable On Improved Credit Metrics; 'BB' Rating Affirmed – 2022/02/11 – US$ 225.00

AAR Corp. – 2023/02/13 – US$ 500.00

AAR Corp. Rating Lowered To 'BB' On Longer Expected Impact From Coronavirus Pandemic; Outlook Negative – 2020/05/28 – US$ 150.00

AAR Corp. ICR Affirmed On Credit Metric Cushion Despite Likely Decline In Demand Due To The Coronavirus, Outlook Stable – 2020/04/09 – US$ 150.00

Research Update: AAR Corp. ICR Affirmed On Credit Metric Cushion Despite Likely Decline In Demand Due To The Coronavirus, Outlook Stable – 2020/04/09 – US$ 225.00

AAR Corp. – 2019/02/22 – US$ 500.00

Summary: AAR Corp. – 2019/02/22 – US$ 225.00

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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Research Update: AAR Corp. Rating Lowered To 'BB' On Longer Expected Impact From Coronavirus Pandemic; Outlook Negative" May 28, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-AAR-Corp-Rating-Lowered-To-BB-On-Longer-Expected-Impact-From-Coronavirus-Pandemic-Outlook-Negative-2450257>

APA:	S&P Global Ratings’ Credit Research. (). Research Update: AAR Corp. Rating Lowered To 'BB' On Longer Expected Impact From Coronavirus Pandemic; Outlook Negative May 28, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-AAR-Corp-Rating-Lowered-To-BB-On-Longer-Expected-Impact-From-Coronavirus-Pandemic-Outlook-Negative-2450257>

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