AAR Corp.'s Proposed Unsecured Notes Rated 'BB', Recovery Rating '4'; Ratings On Existing Convertible Notes Lowered Jan 12
- Language: English
- Published: January 2012
The ratings on Wood Dale, Ill.-based AAR Corp. reflect the risks associated with highly cyclical and competitive conditions in the airline industry, the company's primary market, and modest, albeit strengthening, profitability. Those factors are offset in part by the company's established business position, moderate financial policies, and sufficient liquidity. The global airline industry continues to recover in 2007, spurred by an overall healthy economy and growing air traffic, although high oil prices have constrained gains at many air carriers. The recovery follows a severe downturn in the aftermath of the Sept. 11, 2001, attacks and other shocks to the aviation system, which caused a significant decline in AAR's business and resulted in weak financial performance in the 2002-2004 period. The...
Companies mentioned in this report are: AAR Corp.
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