Fitch Ratings said Tuesday that it has affirmed the Issuer Default Rating for United Technologies Corp. (UTX: Quote) at 'A' following completion of its acquisition of Goodrich Corp.
The Rating Outlook is Stable.
Also, Fitch has upgraded Goodrich to 'A' from 'BBB+'.
Fitch's ratings for United Technologies incorporate the acquisition of Goodrich for $18.4 billion completed July 26, 2012. The acquisition was funded with proceeds from $9.8 billion of senior unsecured notes and $1.1 billion of mandatory convertible notes issued in June 2012. United Technologies also acquired about $2.4 billion of Goodrich debt before netting out acquired cash. The remainder of the purchase price is being funded from divestiture proceeds and cash flow. United Technologies recently agreed to sell the Milton Roy, Sullair and Sundyne industrial businesses for $3.46 billion and Rocketdyne for $550 million. UTC borrowed $2 billion under a short-term bank loan facility in July to assist with near-term financing for the Goodrich acquisition while announced divestitures are pending.
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by RTT Staff Writer
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