S&P trims RTX

S&P said it downgraded its ratings for RTX Corp. (formerly Raytheon Technologies Corp.) and its senior unsecured notes to BBB+ from A-.

“RTX Corp. lowered its free cash flow guidance after disclosing that it will remove certain aircraft engines made by its Pratt & Whitney (P&W) unit from service to inspect them for a potential manufacturing flaw.

“We estimate that the company will materially outspend its free cash flow this year to meet its shareholder return target. Thus we no longer anticipate its credit measures to improve to levels consistent with the A- rating in 2024,” S&P said in a press release.

The outlook is stable.

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