The ratings on Portland, Ore.-based Precision Castparts Corp. are supported by its leading niche positions in most of its markets, considerable business diversity, efficient operations, and a satisfactory financial profile. The ratings also take into account the highly cyclical nature of core markets, which are currently in a significant downturn. Credit protection measures are expected to remain overall appropriate for the ratings, with funds from operations to debt about 30% and debt to capital in the 35%-40% range in the intermediate term. The issuance of common stock to fund 50% of the recent SPS Technologies Inc. acquisition, the commitment to debt reduction and investment-grade ratings, and a good business fit between the two entities are key factors offsetting the effect
