The Pentagon demanded recently that Boeing Co. (A+/Stable/A-1) and General Dynamics Corp. (A/Stable/A-1) repay about $2.3 billion in a long contract dispute stemming from the 1991 cancellation of the Navy's A-12 aircraft development program; the two firms were equal partners on that program. Standard&Poor's Ratings Services said this development, by itself, has no impact on its ratings or outlook on Boeing or General Dynamics. The Department of the Navy notified both companies that unless they paid the above amount by the end of the month, it would turn the matter over to the Defense Finance and Accounting Service for collection. Boeing is expected to take a $1.45 billion pretax charge and General Dynamics $1.1 billion (it already took
