Raytheon Company -- Moody's Says Bipartisan Budget Act is Only Modestly Credit Positive for Defense Contractors

New York, December 13, 2013 -- Moody's Investors Service said the 12 December 2013US House of Representatives approval of the Bipartisan Budget Act of 2013 by a significant majority is modestly credit positive for defense contractors. The two-year compromise agreement that the Senate is expected to pass next week and that President Barack Obama has indicated he will sign into law will provide some relief from additional sequestration-mandated cuts in the US defense budget that were scheduled to kick in mid-January 2014. It should also clear the way for a defense appropriations process, eliminating the need for continuing resolution budgetary management and thereby renewing the ability of defense agencies to forge new contracts."The absolute level of budgetary relief is very minor, but it does afford some added visibility and a meaningfully less restrictive operating environment" noted Russell Solomon, Senior Vice President and one of the lead analysts covering the Aerospace and Defense industry for Moody's Investors Service.

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