Moody’s rates General Dynamics debt A2

Moody's Investors Service said it assigned A2 ratings to two new tranches of senior unsecured debt totaling $1 billion in aggregate (seven- and 10-year maturities) to be issued by General Dynamics Corp.

Net proceeds will be used for general corporate purposes, which Moody's takes to include liquidity replenishment first and foremost following $500 million of similar debt repayment last month for a maturing bond and another $500 million earlier last year, with an acknowledged potential of additional share repurchases, as well, given the fungibility of money.

"We view these after-the-fact refinancings as opportunistic in consideration of what are once again attractive capital markets, particularly for a conservatively financed company such as General Dynamics with a comparatively under-levered balance sheet," Russell Solomon, Moody’s senior vice president and lead analyst for the company, said in a news release.

© 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.