Fitch rates United Technologies euro notes A

Fitch Ratings said it assigned an A rating to United Technologies Corp.’s planned senior unsecured fixed-rate euro notes with a maturity of up to 10 years.

The proceeds will be used for general corporate purposes, including repayment of $500 million of floating-rate notes due June 2015.

The outlook is stable.

The company has an issuer default rating of A, senior unsecured bank credit facilities rating of A, senior unsecured notes rating of A, junior subordinated notes rating of A-, short-term issuer default rating of F1 and commercial-paper rating of F1.

Goodrich Corp. has an issuer default rating of A and an A rating on its senior unsecured notes.

The planned notes closely follow the company’s issuance earlier this month of $850 million of senior unsecured notes and the re-marketing of $1.1 billion of junior subordinated notes related to equity units issued in 2012, Fitch said.

United Technologies’ debt levels have remained somewhat higher than anticipated by Fitch, including a debt-to-EBITDA ratio of 2.1x as of March 31 and 1.9x at the end of 2014, the agency said.

The leverage concern is mitigated by the company’s operating stability, financial flexibility and consistent free cash flow, which reduces its sensitivity to economic cycles and provides the capacity to reduce debt at the company’s discretion, Fitch said.

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