Fitch affirms Finmeccanica

Fitch Ratings said it affirmed Finmeccanica Spa's long-term issuer default and senior unsecured ratings at BBB, short-term issuer default rating at F2 and Finmeccanica Finance SA's senior unsecured rating at BBB.

The outlook remains positive.

The affirmation follows news that the company intends to acquire DRS Technologies, Inc., which is rated B+, for $5.2 billion, including about $1.3 billion of debt.

Fitch also placed DRS's ratings on Rating Watch positive. The watch is based on the likelihood of lower debt levels at DRS as a result of the transaction, Fitch said.

The acquisition multiple will significantly strengthen Finmeccanica's position in the U.S. defense market and fits well into its long-term goal of diversifying away from the Italian market and focusing on core defense competencies, the agency said.

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