S&P rates Rockwell Collins notes A-

Standard & Poor's said it assigned an A- rating to Rockwell Collins Inc.'s $300 million floating-rate notes due 2016 and its $400 million fixed-rate notes due 2043.

The agency also said it assigned an A rating to the company's $400 million fixed-rate notes due 2023 and placed the rating on CreditWatch with negative implications.

The corporate credit rating and existing unsecured notes are unaffected and remain at A on CreditWatch negative.

This $1.1 billion debt offering provides the financing for the company's acquisition of Arinc Inc. announced in August 2013, which is still subject to regulatory approval, S&P said.

The terms of the proposed 2016 and 2043 notes require that they be redeemed if the merger is not completed by May 31, 2014, the agency said.

The terms of the proposed 2023 notes do not have this provision and the notes would remain outstanding even if the acquisition does not close, S&P said.

If the deal doesn't close, the agency said it believes the company would use the note proceeds to repay existing debt.

In that scenario, S&P said it would likely affirm the A corporate credit rating, as well as the A unsecured debt ratings on this tranche and any other unsecured debt that remains outstanding.

If the acquisition closes, the agency said it will lower the rating on the 2023 notes to A- and remove it from CreditWatch negative.

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