Fitch rates Rockwell Collins notes A

Fitch Ratings said it assigned an expected A rating to Rockwell Collins, Inc.'s proposed $1.1 billion floating- and fixed senior unsecured notes due in 2016, 2023 and 2043.

The company plans to issue the notes to partially fund the acquisition of Arinc Inc. from the Carlyle Group for about $1.4 billion.

The company has a long-term issuer default rating of A, short-term issuer default rating of F1, senior unsecured revolving credit facilities rating of A, senior unsecured notes rating of A and commercial-paper rating of F1.

The outlook is negative.

The transaction is expected to close sometime in the first quarter of 2014, Fitch said, and will be funded entirely with debt.

The company has the cash-generating ability to reduce post-acquisition leverage to levels consistent with an A rating within 12 to 24 months of the closing of the acquisition, the agency said.

However, the company's leverage will be high for the current ratings immediately after purchasing Arinc, leaving the company's ratings exposed to unforeseen developments that could reduce the pace of leverage reduction, Fitch said.

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