Fitch gives Lockheed Martin notes BBB+

Fitch Ratings said it assigned BBB+ ratings to Lockheed Martin Corp.’s new unsecured note issuance.

Proceeds will be used to provide longer term funding related to the company's acquisition of Sikorsky Aircraft, which was initially funded with credit facility drawings, commercial paper, and cash.

The notes will likely be issued in several maturities, and Fitch expects a total issuance amount of at least $6 billion, which would be sufficient to repay the borrowings under Lockheed Martin’s 364-day revolving credit facility. Fitch expects additional notes could be issued to repay commercial paper borrowings or to rebuild cash balances.

The agency downgraded the company’s ratings to BBB+ from A- on Nov. 6 as a result of the Sikorsky acquisition. This new bond issuance was incorporated into that rating action.

The outlook is stable. The ratings cover about $15.3 billion of debt.

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