S&P: Harris unchanged

Standard & Poor's said that Harris Corp.'s (BBB+/stable/A-2) announced $400 million acquisition of Multimax Inc. would not affect its rating or outlook on Harris.

This acquisition broadens Harris' government customer base and strengthens the company's relationship with the Department of Defense and other civilian agencies, the agency said.

Harris' two government businesses, government communications and RF communications, generate more than 75% of Harris' revenues and most of the company's operating income, providing a stable source of cash flow as the company continues to invest in its two underperforming commercial businesses, S&P noted.

The transaction is expected to be initially financed with revolver availability and subsequently refinanced with long-term debt financing, S&P added.

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