S&P rates United Technologies notes A

Standard & Poor's said it assigned an A rating to United Technologies Corp.'s $1.25 billion senior unsecured notes due 2020 and $1 billion senior unsecured notes due 2040.

The notes are a drawdown from United Technologies' shelf registration.

Proceeds will be used to fund the acquisition from General Electric Co. (AA+/stable/A-1+) of the GE Security business for about $1.8 billion and to repay outstanding commercial paper borrowings.

"The ratings on United Technologies receive support from its substantial operating and global diversity, leading business positions and strong financial profile, including substantial internal cash generation," S&P analyst Gregoire Buet said in a statement.

"However, most of the company's markets are cyclical and highly competitive, and the company's pension liabilities are significant," he continued.

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