Fitch to rate ITT Exelis BBB+, Xylem BBB

Upon completion of ITT Corp.'s planned spin-off of the defense and water businesses, Fitch Ratings said it expects to assign an issuer default rating of BBB+ to ITT Exelis, Inc. and an issuer default rating of BBB to Xylem, Inc.

Also assigned to Xylem includes a senior unsecured bank credit facilities rating of BBB, senior unsecured long-term debt rating of BBB, short-term issuer default rating of F2 and commercial paper rating of F2.

Fitch also said it assigned to ITT Exelis a senior unsecured bank credit facilities rating of BBB+, senior unsecured long term debt rating of BBB+, short-term issuer default rating of F2 and commercial paper rating of F2.

ITT currently expects the separation to occur by the end of 2011, the agency said.

ITT's ratings will remain in place, including its senior unsecured bank credit facilities rating of A-,.

The outlook for all three companies is expected to be stable and the ratings also are on Rating Watch evolving, Fitch said.

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