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Moody's raises Precision Castparts rating a notch
Moody's raises rating on Precision Castparts senior unsecured debt 1 notch to Baa1
NEW YORK (AP) -- Moody's Investors Service on Friday raised its rating on Precision Castparts Corp.'s senior unsecured debt by one notch to 'Baa1,' citing strong recent performance and a positive outlook for its key manufacturing segments.
The upgrade from 'Baa2' covers about $200 million in debt, Moody's said.
The ratings agency said Portland, Ore.-based Precision has benefited from internal growth, acquisitions and cost-cutting efforts. It said the upgrade reflects the company's strong recent performance and expectations for its primary markets of aerospace components and power generation.
The company makes castings and fasteners for aerospace and power-generation customers, and Moody's said the recently settled machinists strike at Boeing Co. could hurt its near-term results. But over the intermediate term, it said, the company should see sustained demand for its products.
Moody's assigned a "stable" outlook. It had placed the company under review for possible upgrade in September.
Shares of Precision fell $2.21, or 4.4 percent, to $48.28 in afternoon trading.
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