NG Shipbuilding Spinoff Gets Junk Bond Rating
According to a report from the Daily Press - McClatchy-Tribune Information Services, the nation's three credit ratings agencies gave Northrop Grumman Corp.’s spin off shipbuilding unit a junk bond rating. Northrop Grumman is spinning off Huntington Ingalls Industries Inc. into a separate, publicly traded company. Each agency cited concerns about the company's debt, weak profit margins and the uncertainty surrounding future defense spending, the primary source of the company's revenues.
(Source: Daily Press - McClatchy-Tribune Information Services)