Moody's cuts Rockwell outlook

Moody's Investors Service said it affirmed Rockwell Collins, Inc.'s A1 senior unsecured and Prime-1 short-term ratings but revised the outlook to negative.

The agency said the actions reflect the cumulative impact of debt funded share repurchases over the last few years, adverse developments in the funded status of the company's pension plans and a perceived willingness to incur debt to expedite shareholder returns.

These factors have elevated the firm's financial leverage and diminished flexibility within the rating category despite sustained profitability and ongoing free cash flow generation, the agency said.

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