Moody's changes United Technologies outlook to stable

Moody's Investors Service said it affirmed its ratings for United Technologies Corp., including the company's A2 senior debt rating, and revised its outlook to stable from negative.

"The rating actions reflect broad-based improvement in the company's credit profile since its near-fully debt-financed acquisition of Goodrich Corp. in 2012, evidenced in part by the initial balance sheet deleveraging using net proceeds from non-core asset sales and subsequently by a largely interest rate driven reduction in underfunded pension obligations," Russell Solomon, a Moody's senior vice president, said in an agency news release.

The A2 rating for United Technologies broadly reflects the company's large size and geographic scale, leading positions in diversified business lines, strong operating margins and relatively stable free cash flow generation, the agency said.

Nonetheless, Moody’s feels the degree of financial leverage remains somewhat elevated for the assigned ratings.

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