MUMBAI (Thomson Financial) - Moody's Investors Service said it has affirmed
U.S.-based advanced structural materials company Hexcel Corp.'s corporate family
and probability of default ratings at 'Ba3' with a stable outlook, and lowered
the senior secured bank credit facilities rating to 'Ba1' from 'Baa3' reflecting
a proposed increase to the term loan.
The rating agency said the larger amount of secured bank debt, while
beneficial to the company's liquidity profile, caused recovery expectations on
the bank debt to decline as it will represent a higher proportion of liabilities
in downside scenarios.
Moody's believes Hexcel's revenue growth in 2008 could involve incremental
working capital requirements, which in addition to planned capital expenditures
could result in negative free cash flow for the year.
The 'B1' rating on the company's subordinated notes was not affected.
TFN.newsdesk@thomson.com
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