Moody’s cuts Orbital ATK to SGL-3

Moody's Investors Service said it lowered the speculative grade liquidity rating of Orbital ATK, Inc. to SGL-3 from SGL-2, denoting adequate rather than good liquidity.

All other ratings, including the Ba2 corporate family rating, are unaffected at this time.

The outlook is stable.

Moody’s said the less favorable view of Orbital ATK’s liquidity – to an adequate level of liquidity – follows the company's disclosure of: (a) The need to restate its financial statements; and (b) delayed filing of second quarter 2016 financials as a result.

The SGL-3 also considers that the company is unlikely to build cash, and therefore lessen revolver dependence, because the company is likely to continue to repurchase shares when able, the agency said.

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