Fitch eyes Huntington Ingalls positively

Fitch Ratings said it revised Huntington Ingalls Industries Inc.'s (HII) outlook to positive from stable. The agency also affirmed at BBB- the company's long-term issuer default rating and its long-term ratings on its senior unsecured notes, revolver and term loan.

“The positive outlook is primarily driven by HII's $47 billion backlog with more than 70% of shipbuilding revenue under contract through 2027, the establishment of the U.S. Navy's funded 30-year shipbuilding plan that reduces cash flow risk, and management's execution of post-acquisition gross debt reduction with Fitch's forecast that HII's leverage will decline to around or below 2x, while the company improves diversification by program. HII's long-term and visible backlog are key factors supporting positive rating momentum, particularly given its strategic importance within the U.S. national defense industry,” the agency said in a press release.

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