U.K.-based aerospace and defence company BAE Systems PLC's credit metrics have weakened, largely due to the significant increase in its Standard&Poor's-adjusted total debt caused by a higher accounting pension deficit. We are therefore revising the outlook on BAE to negative from stable. We are affirming the ratings on the company at 'BBB+/A-2'. The negative outlook reflects that we could lower the ratings to 'BBB' within the next one-to-two years if the company does not demonstrate a clear path to achieving adjusted FFO to debt of above 30% and adjusted debt to EBITDA of 2x-3x. The negative outlook does not reflect any weakening in BAE's operating performance. On March 16, 2015, Standard&Poor's Ratings Services revised its outlook
