S&P lifts Raytheon

Standard & Poor's said it raised Raytheon Co.'s long-term corporate credit rating to A- from BBB+. The A-2 short-term corporate credit rating is affirmed.

The outlook is stable.

S&P said the upgrade reflects improving credit protection measures, a favorable near-term environment for defense spending and expectations of a balanced deployment of significant cash flow.

Ratings reflect the company's position as a leading U.S. defense contractor, with strengths in defense electronics, and good credit protection measures, the agency said.

The company's solid competitive business posture is supported by its leading positions in defense electronics, broad program base and technological capabilities, the agency added.

Following several years of material increases in defense spending, growth is likely to be much slower, reflecting U.S. government budget pressures and changing military priorities, the agency said, but the impact on Raytheon is not expected to be material.

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