Moody's affirms Harris

Moody's Investors Service said it affirmed the Baa2 senior unsecured debt rating for Harris Corp. following the company's announcement that it intends to acquire Leitch Technology Corp. for $450 million in cash. The outlook is stable.

The ratings affirmation reflects Moody's expectation for continued generation of consistent free cash flow as well as improvement in the growth and profitability of the company's Microwave and Broadcast Communications businesses, the agency noted.

The affirmation further reflects Moody's expectation that Harris will integrate Leitch's operations smoothly and realize expected revenue and cost synergies.

The company's senior unsecured rating at Baa2, its senior unsecured medium-term note program at Baa2, its senior unsecured shelf at provisional Baa2, its subordinated shelf provisional Baa3, its preferred shelf provisional Ba1 and its commercial paper rating at P-2 were all affirmed.

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