On June 27, 2005, Standard&Poor's Ratings Services affirmed its 'BBB' long-term corporate credit rating on Farnborough, U.K.-based BAE Systems PLC and lowered the short-term corporate credit rating to 'A-3' from 'A-2'. All ratings were removed from CreditWatch, where they were placed with negative implications on March 7, 2005. The outlook is negative. The rating actions, which were indicated earlier, follow the recently completed acquisition of U.S.-based United Defense Industries Inc., on which ratings are withdrawn. The affirmation of the long-term rating is based on expectations that BAE Systems will restore its credit protection measures by reducing debt materially following United Defense purchase, which enhanced the firm's already strong business profile. The downgrade of the short-term rating reflects weaker
