On May 7, 2007, Standard&Poor's Ratings Services affirmed its ratings, including the 'BBB/A-2' corporate credit ratings, on major military contractor BAE Systems PLC. The affirmation follows the Farnborough, U.K.-based company's announcement that its wholly owned U.S. subsidiary, BAE Systems Inc., has entered into a definitive merger agreement to acquire Armor Holdings Inc. (BB/Watch Pos/--) for about $4.5 billion (£2.3 billion) in cash, including the assumption of debt. The outlook is stable. About £3.1 billion of debt was outstanding at Dec. 31, 2006. Jacksonville, Fla.-based Armor is a major manufacturer of tactical wheeled vehicles and leading provider of vehicle and individual armored systems, with 2006 sales of $2.4 billion and profit before tax of $214 million. The proposed acquisition
