S&P ups Huntington Ingalls

Standard & Poor's said it raised its corporate credit rating on Huntington Ingalls Industries Inc. to BB from BB-.

The outlook is stable.

At the same time, S&P affirmed the BBB+ issue rating on the company's unsecured industrial revenue bonds, series 1999A, due 2024. Huntington Ingalls Inc. is the obligor of the series 1999A bonds, and the bonds are guaranteed by a subsidiary of Northrop Grumman Corp.

S&P said the upgrade reflects its expectation that Huntington Ingalls' increasing EBITDA margins and lower debt levels, including declining post-retirement obligations, should result in improving credit metrics over the next two years despite flat revenues.

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