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Fitch cuts United Technologies
Fitch Ratings said it downgraded United Technologies Corp. issuer default rating to A from A+, affirmed its short-term rating at F1 and removed the ratings from Rating Watch negative.
The outlook is stable.
The actions incorporate the pending acquisition of Goodrich Corp. for $18.4 billion, which is expected to occur in the middle of 2012, according to the agency.
The downgrade reflects an increase in the company's debt and leverage associated with the Goodrich acquisition, the agency noted.
Fitch said the company's debt-to-EBITDA ratio could peak at nearly 3.0 times on a pro forma basis at completion of the Goodrich acquisition. Leverage is expected to fall below 2.5x by the end of 2012 and below 2.0x before the end of 2013, which would still be weak for the rating, the agency said.
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