The ratings on Portland, Ore.-based Precision Castparts Corp. are supported by the company's leading niche positions in most of its markets, business diversity, efficient operations, and a very strong financial profile. The ratings also take into account the highly cyclical nature of the company's core markets and likelihood of additional acquisitions. Precision Castparts recently announced that it plans to acquire privately held Carlton Forge Works (not rated) and related entities for $850 million. Carlton Forge manufactures seamless rolled rings for aerospace applications (mostly aircraft engines), expanding Precision Castparts' range of forged products. The company did not disclose how it would finance the purchase, but Standard&Poor's Ratings Services expects it to use a combination of cash and short-term debt.
