Fitch ups Northrop convertible

Fitch Ratings said it affirmed the BBB ratings on Northrop Grumman Corp.'s senior unsecured debt and bank facility. The BBB rating also applies to the senior unsecured debt of Northrop Grumman's subsidiaries, including Litton Industries and Northrop Grumman Space & Mission Systems Corp. (formerly TRW Inc.).

Fitch also raised the rating on Northrop Grumman's convertible preferred stock to BBB- from BB+.

The outlook has been revised to positive from stable for all classes of debt.

Fitch said the revision to the outlook reflects continued growth in revenues and free cash flow, additional debt reduction, and improvement in the company's credit protection measures. Fitch expects Northrop Grumman to follow a balanced cash deployment strategy, including both debt reduction and share repurchases.

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