On April 14, 2005, Standard&Poor's Ratings Services said that its ratings, including the 'BBB/A-2' corporate credit ratings, on BAE Systems PLC remain on CreditWatch with negative implications, where they were placed on March 7, 2005. Standard&Poor's also stated its 'BBB' long-term corporate credit rating on the company would be affirmed and its short-term corporate credit rating would be lowered to 'A-3' from 'A-2' if the proposed acquisition of U.S.-based United Defense Industries Inc. (BB+/Watch Pos/--) is completed on terms substantially similar to those currently indicated. All ratings would be removed from CreditWatch at that time. The outlook would be negative. The United Defense transaction, valued at $4.2 billion, including assumed net debt, is to be funded
