NEW YORK (Standard&Poor's) March 7, 2005--Standard&Poor's Ratings Services said today that it placed its 'BBB'/'A-2' corporate credit and its other ratings on Farnborough, U.K.-based BAE Systems PLC on CreditWatch with negative implications. "The action followed BAE Systems' announcement that it has agreed to acquire U.S.-based United Defense Industries Inc., which has a 'BB+' corporate credit rating, for $4.2 billion in cash, including assumed net debt," said Standard&Poor's credit analyst Roman Szuper. "BAE Systems expects to finance the transaction with a new $3 billion credit facility, cash on hand, and proceeds from an equity issue. Although the acquisition will further expand BAE Systems' presence in the important U.S. defense market and diversify its operations, the
