Fitch rates BAE bonds BBB+

Fitch Ratings said it assigned final BBB+ ratings to BAE Systems Holdings Inc.’s $800 million 3.80% 10-year senior unsecured bonds and $300 million 4.75% 30-year senior unsecured bonds.

The bonds are fully guaranteed by BAE Systems plc, the ultimate parent entity.

The assignment of the final rating follows receipt of documents conforming to the information previously received.

The proceeds of the notes will be used to refinance the group’s $750 million bond maturing in 2015 and $350 million bond maturing in 2016.

The ratings are in line with BAE’s BBB+ long-term issuer default rating as the notes constitute direct, unsecured and unconditional obligations of the issuer.

The notes rank equally among themselves and with all other present or future unsecured and unsubordinated obligations of the issuer, Fitch said.

BAE achieved stable earnings margins in the first half of 2014 despite a revenue decline of more than 10% due to challenging operating conditions at most of its divisions, the agency said.

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