Fitch affirms Lockheed Martin

Fitch Ratings said it affirmed Lockheed Martin Corp.'s issuer default rating at A-, senior unsecured debt at A-, bank facility at A- and short-term issuer default rating at F2.

The outlook is stable.

Ratings are supported by the company's position as a leading defense contractor, high levels of defense spending, strong cash flow and liquidity, debt reduction in 2008, solid credit metrics, large backlog and solid growth prospects, the agency said.

Concerns include U.S. government budget deficits and their potential impact on defense spending after fiscal year 2010, the large pension deficit, a cash deployment strategy focused on share repurchases and dividend increases and the possibility of higher acquisition spending, the agency noted.

Leverage improved slightly to 0.7 times in 2008 and the latest 12 months ending March 29, compared with 0.9x in 2007.

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