S&P rates Finmeccanica loans

Standard & Poor's assigned its BBB long-term and A-2 short-term corporate credit ratings to Finmeccanica SpA and assigned a BBB debt rating to Finmeccanica's €2 billion euro medium-term note program and new €1 billion senior unsecured credit facilities.

The outlook is stable.

"The ratings reflect Finmeccanica's very diverse positions in the European aerospace and defense industry and its strong financial flexibility," said S&P credit analyst Nicolas Baudouin.

S&P said Finmeccanica enjoys a favorable mix of activities with a focus on the predictable military sector and strong financial flexibility, driven by its stake in semiconductor manufacturer STMicroelectronics (A-/stable/A-2) and conservative management of liquidity.

The ratings are nevertheless constrained by the group's lack of control over cash flows, its large number of off-balance sheet guarantees and its stretched financial measures when adjusted for pensions liabilities, as well as to a lesser extent by exposure to challenging markets, S&P said.

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