Moody’s may lower Rockwell Collins

Moody's Investors Service said it placed the ratings of Rockwell Collins, Inc. under review for downgrade, including its A3 senior unsecured and P-2 short-term ratings.

The review follows news that Rockwell Collins intends to purchase B/E Aerospace, Inc. for about $8.3 billion, including the assumption of $1.9 billion of B/E Aerospace debt, Moody’s said.

Rockwell Collins plans to pay for the B/E Aerospace shares with a combination of cash and equity.

The transaction is subject to shareholder votes at both companies and is expected to close during the first quarter of 2017, the agency said.

Moody's said it expects to conclude its review prior to closing and, based on the amount of primary equity relative to incremental debt to fund the transaction and the anticipated cash flow prospects, the agency said it could lower the company’s long-term rating to the mid-Baa range.

The B/E Aerospace debt is unchanged as that debt is expected to be refinanced at or around the time of closing, the agency said.

© 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.