Fitch affirms Lockheed Martin

Fitch Ratings said it affirmed Lockheed Martin Corp.'s issuer default rating at A-, senior unsecured debt at A-, bank facility at A-, short-term issuer default rating at F2 and commercial paper programs at F2.

The outlook is stable.

Ratings are supported by the company's leading position, high levels of defense spending, strong liquidity and cash flow, solid credit metrics for the ratings, large backlog and solid growth prospects, the agency said.

Concerns include U.S. government budget deficits and their potential impact on defense spending after fiscal year 2011, the large pension deficit, a cash deployment strategy focused on returning the majority of free cash flow to shareholders, some modest program concentration and execution on a few programs, the agency noted.

The company's debt-to-EBITDA ratio for the 12 months ending March 31 was 1.1 times compared with 0.7x in 2008.

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