Fitch assigns Raytheon notes A-

Fitch Ratings said it rated Raytheon Co.’s proposed senior unsecured notes A-.

Raytheon plans to issue $600 million of senior unsecured notes that will rank equally with the company's existing unsecured notes. The maturity of the notes is expected to range between 10 and 30 years.

Raytheon will use the funds to make a discretionary contribution to its qualified U.S. pension plans. As of Dec. 31, 2013, Raytheon had a sizable pension deficit of $3.3 billion (86% funded), however Fitch expects the funded status of the pension plan will likely be pressured in 2014.

Interest rates have declined by about 50 basis points to 60 bps since the end of 2013, putting pressure on the discount rate and threatening to reverse some of the improvements in the funded status gained in 2013. Offsetting this likely deterioration in the funding position is the beneficial impact on pension cash flows through 2017 resulting from the passage of the Highway and Transportation Funding Act of 2014.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.