S&P Places BE Aerospace (BEAV) on CreditWatch Developing

Standard & Poor's Ratings Services said that it placed its ratings on B/E Aerospace Inc. (Nasdaq: BEAV), including the 'BB+' corporate credit rating, on CreditWatch with developing implications.

The CreditWatch placement follows B/E Aerospace's announcement that it plans to separate its businesses into two independent publicly traded companies: one focused on the manufacture of aircraft cabin interiors and the other focused on distribution logistics and technical services for the aerospace and energy markets.

"We expect both the manufacturing and services businesses to be able to successfully compete in the markets served following the separation and that each will be a major player in its respective industry," said Standard & Poor's credit analyst Christopher Denicolo. "However, each independent company would have a less diversified business operation and a lower EBITDA base than B/E Aerospace currently has on a consolidated basis."

The company expects the spin-off to occur in the first quarter of 2015, subject to customary closing conditions.

We will monitor the company's progress on the planned separation and subsequent spin-off. Each company's capital structure and financial policies after the separation are currently under development and are not yet available. We will review the information as it becomes available and assess the ratings implications for B/E Aerospace before resolving the CreditWatch placement.

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