Fitch: SPX outlook to stable

Fitch Ratings said it affirmed the ratings for SPX Corp.'s senior unsecured debt and senior secured bank debt at BB and BB+, respectively. The outlook was revised to stable from evolving.

Fitch said the outlook revision recognizes the anticipated reduction in debt and leverage after SPX completes its divestitures of Edwards Systems Technology and Kendro.

Estimated proceeds of nearly $2 billion from the divestitures will be used to pay down most of SPX's bank term debt and senior notes. In addition to reducing debt by approximately $1.7 billion, the company plans to repurchase 10 million shares of its stock for roughly $450 million.

Fitch said it estimates pro forma debt/EBITDA will fall below 2.0x compared to historical levels above 3.0x.

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