Research Update: AAR Corp. 'BB' Corporate Credit Rating Affirmed, Unsecured Debt Ratings Lowered On Acquisition Announcement Oct 11

Standard & Poors, October 2011

Abstract
Late last week U.S.-based AAR Corp. announced a $280 million acquisition, which it plans to finance with borrowings from its recently enlarged revolver. We are affirming our 'BB' corporate credit rating on the aerospace and defense supplier and maintaining our stable outlook. We are also lowering our issue-level ratings and revising our recovery ratings on the company's unsecured debt because of the larger revolver. On Oct. 25, 2011, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on AAR Corp. The outlook is stable. At the same time, we lowered the issue-level rating on the company's unsecured debt to 'BB-' from 'BB' and revised the recovery rating to '5' from '4'. On Oct. 21, 2011, AAR Corp. announced...

Companies mentioned in this report are: AAR Corp.
Action: Downgraded

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

AAR Corp.

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