Fitch downgrades United Technologies

Fitch Ratings said it downgraded United Technologies Corp.’s long term issuer default rating and long-term debt ratings to A- from A.

Fitch also said it downgraded the company’s short-term issuer default rating and commercial-paper ratings to F2 from F1.

The agency also said it downgraded the company’s senior unsecured bank credit facilities to A- from A, senior unsecured notes to A- from A, junior unsecured subordinated debt to BBB+ from A-, short-term issuer default rating to F2 from F1 and commercial-paper rating to F2 from F1.

Fitch also said it downgraded Goodrich Corp.’s long-term issuer default rating to A- from A and senior unsecured notes to A- from A.

The outlook is stable.

The downgrades reflect the company’s aggressive cash deployment for share repurchases, which Fitch said it expects will contribute to higher debt levels in 2016 and result in consistently weaker credit metrics.

The stable outlook considers a view that UTC’s operating profile remains consistent with the A category despite near-term challenges surrounding market share and expected margin pressure in the aerospace businesses, the agency said.

Rating concerns include the risk of large acquisitions or share repurchases that lead to additional and sustained increases in debt and leverage, Fitch said.

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