Moody's affirms Precision Castparts

Moody's Investors Service said it affirmed Precision Castparts Corp.'s Baa2 senior unsecured and P-2 short-term rating ratings and revised the outlook to positive from stable.

The outlook is positive because Moody's said it expects further growth in earnings and substantial free cash flow generation beyond the strong performance achieved during the last year and underlying demand in the aerospace and industrial gas turbine markets, which account for the bulk of Precision's revenues, is expected to remain at elevated levels for several years.

Because of Precision's leadership position in manufacturing products to high tolerances required in these industries, the agency said that the company has developed a substantial backlog of long-term business awards.

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