Fitch affirms BAE Systems

Fitch Ratings said it affirmed BAE Systems plc's long-term issuer default rating and senior unsecured ratings at BBB+ and its short-term IDR at F2.

The outlook for the long-term IDR is stable.

At the same time, Fitch said it affirmed BAE Systems Holdings Inc.'s notes at senior unsecured BBB+ and affirmed its commercial paper program's short-term rating at F2.

"The outlook for defence spending in BAE's two key markets of the U.S. and the U.K. is uncertain and the company may experience pressure on its top line growth in the short to medium term," said Tom Chruszcz, director in Fitch's EMEA Industrials group, in a news release. "However, BAE benefits from good business and geographical diversity, which limits the downside potential from further cuts to defence budgets, and its capital structure and earnings margins have remained stable in recent years. These factors underpin the stable outlook."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.