S&P: GenCorp on developing watch

Standard & Poor's said it placed its ratings, including the B corporate credit rating, on GenCorp Inc. on CreditWatch with developing implications.

The agency said the CreditWatch action follows GenCorp's announcement that it plans to acquire Pratt & Whitney Rocketdyne from United Technologies for $550 million.

The company "will fund the purchase with a combination of cash on hand and new debt, which we believe will result in a modest deterioration in key credit metrics," said S&P credit analyst Chris Mooney in a news release.

However, the acquisition will likely improve GenCorp's market position and product diversity and almost double its revenue base, the agency said.

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