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NEW YORK — Ratings agency Standard & Poor's said Wednesday it has lowered its long-term corporate credit rating on airline interior components manufacturer B/E Aerospace Inc. to junk status.
S&P said it lowered the rating to BB+, which is junk status, from BBB-, which is investment grade.
Debt ratings can affect companies' borrowing costs.
S&P said it also lowered the issue-level rating on the company's senior unsecured notes to BB from BB+. Those ratings are both junk status.
At the same time, S&P said it affirmed its BBB- issue-level rating on the company's senior secured credit facility.
S&P said it removed all ratings on B/E Aerospace from CreditWatch.
The outlook is stable, S&P said, adding that the company has about $1.1 billion of debt.
"The downgrade reflects difficult conditions for commercial aviation suppliers due to the widespread global recession, resulting in materially lower air traffic, airline capacity cuts, weak orders for new aircraft, and uncertain airplane delivery prospects, which have adversely affected BE Aerospace's sales and earnings," said Standard & Poor's credit analyst Betsy R. Snyder.
