Participation in the highly competitive and cyclical general aviation market. Limited end-market and geographic diversity, and some product diversity. Weakness in military demand. Well-established positions in niche markets. Modest debt balances. Free cash flow can be constrained by working capital expenditure requirements to support new programs. Strong liquidity. The outlook on AAR Corp. is stable. Credit metrics have been strong for the rating since the Telair divestiture in 2015, but we expect them to decline over the next year, given shareholder rewards and potential acquisitions, but remain appropriate for the rating. We expect revenues and earnings to benefit from recent contract wins, especially in the in the expeditionary services segment. This should result in funds from operations (FFO) to debt
