Moody's may upgrade Harris

Moody's Investors Service said it placed Harris Corp.'s Baa2 long-term senior unsecured debt rating on review for possible upgrade.

The review was prompted by the continued success Harris has had in growing revenues and operating profits over the last several years, the agency said. The company recently announced that it will acquire Multimax, Inc. for about $400 million. Moody's expects the company will continue to have strong Baa/A credit metrics even after taking the acquisition and the increased debt levels required to finance it into consideration.

In its review, the agency said it will examine the financial strength, profitability and cash-generating prospects for the RF and government systems units; the continued challenges the company faces in the broadcast and microwave businesses; management's key financial policies, including stock repurchase programs; and Harris' willingness to increase leverage to make acquisitions.

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