S&P rates Lockheed Martin notes A-

Standard & Poor's said it assigned an A- rating to Lockheed Martin Corp.'s (A-/stable/A-2) proposed issuance of unsecured notes.

The notes will be issued as a drawdown to the company's existing shelf registration and will be issued in three tranches with five-, 10- and 30-year maturities.

Proceeds will be used for general corporate purposes, including redeeming the company's $500 million 4.121% notes due 2013.

Ratings reflect the company's position as the largest defense contractor worldwide, healthy contractual backlog, solid operating performance, cash generation and liquidity, the agency said.

Ratings also reflect expectations that management will pursue a balanced capital allocation between dividends, share repurchases, acquisitions and voluntary pension contributions, the agency noted.

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