S&P rates Textron notes A-

Standard & Poor's said it assigned an A- rating to Textron Inc.'s $350 million 5.6% notes due 2017, a shelf drawdown.

Proceeds will be used to repay a portion of commercial paper borrowings incurred to fund the acquisition of United Industrial Corp.

"The ratings on Textron are supported by its leading market positions in selected segments of aircraft [Cessna business jets and Bell helicopters] and industrial products manufacturing, broad business diversity and a fairly conservative financial policy that historically resulted in a relatively low use of debt and good liquidity," S&P credit analyst Roman Szuper said in a written statement.

"The ratings also take into account the company's participation in highly competitive and cyclical industries and profit margins somewhat below those of its peers," Szuper said.

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