Teledyne Inc, diversified defence electronics and contract manufacturing company, has suffered a downgrade at the hands of Standard & Poor’s Corp, which lowered its ratings on the senior debt to triple-B from triple-B-plus and subordinated debt to triple-B-minus from triple-B. About $360m of long-term debt securities is affected, and the outlook is now stable. The downgrades reflect a weakened financial profile resulting from mediocre commercial operations, cuts in defence spending and charges for defence contract cost overruns, restructuring charges, and pending cash payments tosettle two civil lawsuits, the ratings agency said, adding that gradually improving business prospects, a large number of saleable stand-alone units, and minimal debt maturities for the next several years result in sufficient financial flexibility for maintenance of the reduced ratings on the debt.
