S&P puts Lockheed Martin on watch

Standard & Poor’s said it placed its ratings, including the long-term A- corporate credit rating, on Lockheed Martin Corp. on CreditWatch with negative implications. S&P did not place its short-term A-2 rating on the company on CreditWatch.

“The CreditWatch placement follows the company’s announcement that it plans to buy Sikorsky Aircraft from United Technologies Corp. for $9 billion – financed mostly with debt – which will likely cause its credit protection measures to deteriorate materially,” said S&P credit analyst Chris Mooney in a news release.

“At the same time, Lockheed announced that it will undertake a strategic review of its government information technology (IT) and technical services business (representing roughly $6 billion of total revenues), which will likely result in the spinoff or sale of these businesses.”

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