Fitch gives Northrop Grumman notes BBB+

Fitch Ratings said it assigned a BBB+(EXP) rating to Northrop Grumman Corp.’s proposed senior unsecured notes.

The company plans to issue 10-year senior unsecured notes that will rank equally with the company's existing unsecured notes.

Proceeds will be used for general corporate purposes, including debt repayment, which may include redemption of the remaining $200 million of 6.75% senior unsecured notes due 2018 by wholly owned subsidiary Northrop Grumman Systems Corp.

The agency expects the size of the issuance will be less than $1 billion.

The outlook is stable. The ratings also apply to Northrop Grumman Systems.

The ratings of Northrop Grumman will cover up to $7.2 billion of long-term debt after giving effect to the proposed senior unsecured notes and the redemption of the $200 million senior unsecured notes by Northrop Grumman Systems, Fitch said. Similar to the company's other existing senior unsecured notes, the proposed notes will be governed by the indenture dated as of Nov. 21, 2001.

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