Fitch rates General Dynamics notes A

Fitch Ratings said it assigned an A rating to General Dynamics Corp.'s issuance of $1 billion of senior unsecured notes.

The proceeds will be used to replenish cash utilized to retire $500 million of senior unsecured notes that matured in July 2016, Fitch said.

The remaining $500 million will be used for general corporate purposes, including share repurchases, the agency said.

The outlook is stable.

The ratings are supported by the company’s solid credit metrics, strong free cash flow, financial flexibility and strong liquidity position, competitive positions in business jets and defense and large backlog, Fitch said.

Another positive factor is the level of diversity in the company's portfolio of products and services, both domestically and internationally, including military and commercial ship building, ground combat systems and business jets, the agency said.

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