Moody's rates Finmeccanica Finance notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to €700 million of new senior unsecured medium-term notes due January 2021 to be issued by Finmeccanica Finance SA, a wholly-owned subsidiary of Finmeccanica SpA.

Finmeccanica SpA guarantees the notes.

Net proceeds from the offering are expected to be used to repay borrowings under the company's revolving credit facility, which had €950 drawn at the end of September, and for general corporate purposes.

"Finmeccanica is capitalizing on strong capital market conditions to support its liquidity profile on an opportunistic and cost effective basis," Moody's senior vice president and lead analyst for the company Russell Solomon said in a news release.

"With weaker free cash flow generation than previously anticipated for the full year of 2013, owing to ongoing operational shortfalls but also various contractual disputes which may prove only temporarily disruptive, the transaction will help the company to maintain a solid liquidity profile over the interim period until targeted improvements in operational performance can be achieved."

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