|Expense Ratio (net)||N/A|
|Last Cap Gain||N/A|
|Morningstar Risk Rating||N/A|
|Beta (5Y Monthly)||N/A|
|5y Average Return||N/A|
|Average for Category||N/A|
GD will use the proceeds to fund debt maturities upcoming in May 2020, repay commercial paper and any excess for general corporate purposes. The A2 senior unsecured rating considers General Dynamics' strong competitive positions across its products and services as a key prime contractor to the US Department of Defense (DoD). Liquidity will strengthen with the successful completion of today's debt issuance and there remain good prospects for deleveraging through 2021, albeit below Moody's original expectations.
Moody's changed the rating outlook to negative from stable. The negative outlook reflects the potential for GD to sustain its elevated financial leverage for long after Moody's expectation at the time of the CSRA acquisition in May 2018. At that time, Moody's affirmed the A2 senior unsecured rating with a stable outlook on the expectation that GD would timely repay the debt incurred for the CSRA acquisition, leading to declining leverage through 2021.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of General Dynamics Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.