Research Update: AAR Corp. Apr 03

Standard & Poors, April 2003

Abstract
On April 18, 2003, Standard & Poor's Ratings Services lowered its ratings, including lowering the corporate credit rating to 'BB-' from 'BBB-', on aviation support services provider AAR Corp. The ratings remain on CreditWatch with negative implications, where they were placed on Feb. 19, 2003. Outstanding debt is about $250 million. The downgrade reflects AAR's weak earnings, with an expectation of continued pressure on revenues, and reduced financial flexibility. As a result, most credit protection measures are poor and likely to remain significantly below those consistent with the prior rating, given a very challenging operating environment in the firm's primary market, the airline industry. Barring any material deterioration in industry conditions, the ratings are likely to be affirmed and removed...

Companies mentioned in this report are: AAR Corp.
Action: Downgraded, On CreditWatch Negative

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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