S&P: Finmeccanica unaffected

Standard & Poor's said that the recently announced agreement between Finmeccanica SpA and BAE Systems plc (both rated BBB/stable/A-2) - whereby Finmeccanica will acquire 75% of the companies' joint venture in defense electronics for £379 million, with an option to buy the remaining 25% - does not affect the ratings or outlook on either entity.

S&P said the agreement will enable Finmeccanica to acquire a number of U.K.-based assets, notably in avionics. In addition, Finmeccanica's agreement with telecommunications equipment supplier Alcatel will merge both groups' space activities into two joint ventures.

These agreements will strengthen Finmeccanica's position, particularly in avionics, and improve its control of cash flows, as some joint ventures will be dismantled, the agency said.

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