Moody's gives L-3 notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to L-3 Communications Corp.'s proposed senior subordinated notes due 2015 and a Ba3 rating to L-3 Communications Holding, Inc.'s proposed convertible contingent debt securities due 2035.

In a related action, the agency said it moved the Ba2 corporate family rating to L-3 Communications Holdings, Inc. from L-3 Communications Corp. in accordance with standard practice of lodging the corporate family rating at the highest legal entity in the organizational structure for which debt securities have been rated.

The outlook is negative.

Moody's said the company has a speculative-grade liquidity rating of SGL-2.

The ratings reflect substantial debt levels that the company carries, which will increase significantly as the result of the issuance of these notes to partially finance the acquisition of Titan, the agency noted.

The negative outlook reflects Moody's concerns about L-3's ability to quickly repay debt and restore financial metrics to levels the company had experienced prior to the proposed Titan acquisition, the agency added.

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