Harris Corp.'s Proposed $250 Million Floating-Rate Unsecured Notes Rated 'BBB-'; Unsecured Debt Ratings Affirmed

NEW YORK (S&P Global Ratings) Nov. 1, 2017--S&P Global Ratings today assigned its 'BBB-' issue-level rating to Harris Corp.'s proposed $250 million floating-rate unsecured notes due 2020. At the same time, we affirmed our 'BBB-' issue-level rating on the company's existing unsecured debt. The company will use the proceeds from these notes to repay its $650 million term loan due 2020 ($252 million currently outstanding). Although the transaction will likely slightly reduce the company's interest expense, we do not believe that it will significantly alter Harris' credit metrics. Our rating on Harris reflects its strong position in tactical radios, its diversified product portfolio, and its good program diversity. We expect the company's revenue to increase modestly over the next 12

...NEW YORK (S&P Global Ratings) Nov. 1, 2017--S&P Global Ratings today assigned its '###-' issue-level rating to Harris Corp.'s proposed $250 million floating-rate unsecured notes due 2020. At the same time, we affirmed our '###-' issue-level rating on the company's existing unsecured debt. The company will use the proceeds from these notes to repay its $650 million term loan due 2020 ($252 million currently outstanding). Although the transaction will likely slightly reduce the company's interest expense, we do not believe that it will significantly alter Harris' credit metrics. Our rating on Harris reflects its strong position in tactical radios, its diversified product portfolio, and its good program diversity. We expect the company's revenue to increase modestly over the next 12 months based on its recent contract wins and likely increases in U.S. and foreign government defense spending. We also expect Harris' EBITDA margins to improve because the company has divested its low-margin service...

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