S&P ups Ritek outlook to stable

Standard and Poor's confirmed the B+ corporate credit rating on Taiwan-based Ritek Corp. and revised its outlook to stable from negative. Also, S&P assigned a B+ rating to Ritek's $160 million convertible bonds due Sept. 25, 2008.

Ratings reflect very competitive and cyclical industry conditions, the company's relatively aggressive financial policies and underperforming long-term investments.

Weaknesses are partially offset by Ritek's leading market position and competitive cost profile.

The outlook was revised because of an improvement in the company's financial profile and operating performance.

Fitch ups U.S. Bancorp outlook

Fitch Ratings revised the outlook for U.S. Bancorp and subsidiary banks to positive from stable and confirmed all ratings.

Despite weak economic conditions, U.S. Bancorp continues to perform well with its characteristic strong level of earnings driven by a solid net interest margin, diverse sources of non-interest income and disciplined expense management, Fitch said.

U.S. Bancorp has not been immune to challenges on the asset quality front and has also taken steps to reduce the risk profile of the organization by exiting some higher risk segments of both the commercial and consumer portfolios.

However, while non-performing assets remain elevated, they are at a manageable level and supported by ample reserve coverage, Fitch noted.

S&P confirms Lockheed Martin

Standard & Poor's confirmed Lockheed Martin Corp.'s ratings (BBB/A-2), followings its agreement to acquire Titan Corp. (BB-/positive watch) for $1.8 billion in cash and stock plus assumed debt of about $580 million. The outlook is stable.

The issuance of common equity preserves financial flexibility while adding a complementary business. The overall credit protection measures will not change materially as a result, S&P said.

At June 30, Lockheed had $1.9 billion of cash and equivalents plus a $1.5 billion revolving credit facility maturing in November 2006 with no amounts outstanding.

Liquidity is ample and there is a comfortable cushion in financial covenants. Debt maturities for the next few years are moderate and contingent liabilities and guaranties are modest.

Lockheed, benefiting from a healthy U.S. defense spending environment and better internal efficiencies, is expected to generate credit protection measures consistent with current ratings over the intermediate term, S&P said.

Moody's confirms Lockheed, puts Titan on upgrade review

Moody's Investors Service confirmed the Baa2 long-term and Prime-2 short-term debt ratings of Lockheed Martin Corp. after its announcement of the definitive agreement to acquire Titan Corp.

Moody's also placed the ratings of Titan under review for possible upgrade.

Lockheed's outlook remains stable.

The confirmation is based, in part, on the prudent funding of the transaction, as Lockheed plans to use about $900 million of stock in the transaction and its strong pre-acquisition liquidity position, which includes about $2.1 billion of cash at June 30.

Fitch affirms Lockheed ratings

Fitch Ratings confirmed Lockheed Martin Corp.'s ratings (BBB+ senior) following its agreement to purchase Titan Corp.

The outlook remains stable.

S&P ups Comcast outlook to stable

Standard & Poor's revised the outlook on Comcast Corp. to stable from negative, based on progress in integrating and improving the operating performance of the AT&T Broadband systems acquired in November 2002.

The BBB corporate credit and senior unsecured debt ratings were confirmed.

Comcast has reduced debt as anticipated at the time of the acquisition and could potentially accelerate debt reduction following the sale of its 57% stake in QVC Inc. to Liberty Media Corp., which is expected to close in the coming weeks, S&P said.

Excluding QVC, EBITDA coverage of interest expense was about 3x in the first six months of 2003. Debt to annualized EBITDA was relatively high at 4.4x, excluding QVC EBITDA and $5.6 billion in debt exchangeable into third-party common stock.

Based on second quarter annualized EBITDA, debt repayment from roughly $5.3 billion in after-tax proceeds from the QVC divestiture and liquidation of $1.5 billion in AOL Time Warner preferred stock, the debt-to-EBITDA ratio would be close to 3x, in line with the mid 3x area appropriate for a stable outlook.

Comcast expects $4 billion in capital expenditures in 2003, elevated by about $1.2 billion needed to rebuild the former AT&T systems. As a result, discretionary cash flow will likely be minimal.

Despite limited free cash flow generation in 2003, Comcast still has substantial liquidity from $1.3 billion in cash and $5.16 billion available from unused lines of credit at June 30.

Fitch confirms XL

Fitch Ratings confirmed XL Capital Ltd.'s long-term issuer and senior debt rating at A+ and preferred stock at A. The outlook is stable.

The ratings continue to reflect XL's position within the global insurance and reinsurance markets, history of favorable underwriting and earnings performance, strong interest coverage and operating cash flow and adequate capital position at the parent and subsidiary level, Fitch said.

Financial leverage remains somewhat high relative to its current debt ratings, rising significantly in the last few years due to several new securities offerings. The debt-to-total capital ratio is currently about 20% - down from 22% at yearend 2002, but up from 7% at year-end 2000.

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