S&P views General Dynamics positively

S&P said it revised its outlook for General Dynamics Corp. to positive from stable and affirmed the A- long-term issuer rating.

“GD's credit metrics will likely be strong for the rating in 2023 and 2024. The company is benefiting from strong demand across its segments, including for business jets and defense products. Revenue growth supports robust cash flow, which, coupled with recent debt reduction, results in improved credit measures. We forecast funds from operations (FFO) to debt of 40%-44% and free operating cash flow to debt of (FOCF) of 34%-38%. The improvement comes despite a number for headwinds,” S&P said in a press release.

The agency said it expects GD’s credit measures to remain strong for the rating, reflecting recent debt repayment, increasing free operating cash flow, and moderate financial policies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.