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S&P rates General Dynamics notes A
Standard & Poor's said it assigned its A rating to General Dynamics Corp.'s $750 million of 1.8% senior unsecured notes due 2011.
All of General Dynamics' major subsidiaries, on a senior unsecured basis, guarantee the notes, the agency said, adding that it expects the company to use the proceeds of the notes to fund a portion of the $643 million purchase price of the proposed acquisition of Axsys Technologies Inc. (unrated).
"The ratings on General Dynamics reflect its healthy internal cash generation and good profitability from strong positions in defense programs and business jets (although the latter is generating lower profits currently due to a market downturn)," said S&P credit analyst Roman Szuper.
"Our ratings also incorporate expectations that the company will pursue a balanced financial policy and capital allocation regarding acquisitions, share repurchases, dividends, and debt levels to maintain credit protection measures appropriate for the ratings," he continued.
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