NEW YORK (AFX) - Credit ratings agency Moody's Investors Service said Monday that Textron Inc.'s planned acquisition of Overwatch Systems LLC would not affect the credit ratings of either company.
Textron Inc. said last Wednesday its Textron Systems subsidiary would acquire Overwatch Systems, a developer and provider of intelligence analysis tools and communications products, for roughly $325 million.
Moody's said the purchase price, which includes Overwatch debt, is 'within expectations' for Textron, and can be readily funded with existing financial resources. The acquisition, which will expand Textron's defense-related operations, is not expected to have any rating implications for Textron, Moody's said.
Moody's has a senior unsecured rating of 'A3' for Textron.
Shares of Textron, which makes Bell helicopters and Cessna aircraft, added $2.11, or 2.4 percent, to $90.78 in afternoon trading on the New York Stock Exchange. The stock has traded between $70.25 and $98.96 over the past year.
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