U.K.-based global aerospace and defense company BAE Systems PLC continues to demonstrate relatively weak leverage metrics due to a substantial pension deficit. We are therefore lowering to 'BBB' from 'BBB+' our long-term corporate credit and debt ratings on the company. The stable outlook reflects that we forecast improving leverage metrics over the next two years to about 3.0x debt to EBITDA and 25% funds from operations to debt by 2018, supported by steady operating results and improving cash flow generation. On Sept. 16, 2016, S&P Global Ratings lowered to 'BBB' from 'BBB+' its long-term corporate credit and related debt ratings on U.K.-based global aerospace and defense company BAE Systems PLC (BAE). At the same time, we affirmed our 'A-2' short-term
