Standard & Poor's Rating Service on Tuesday raised its investment-grade ratings on Goodrich Corp. one notch to reflect the aerospace and defense company's improving credit protection measures and increasing profitability.
S&P lifted the Charlotte, N.C.-based company's corporate credit rating to "BBB+" from "BBB." The outlook is stable.
The ratings are supported by the company's leading position in certain aerospace businesses and good liquidity, S&P said. Goodrich's leverage, or debt-to-adjusted earnings ratio, has declined steadily since 2002 and should continue to decline with higher earnings. Additionally, excess cash could be used for small acquisitions and share repurchases.
"The solid commercial aerospace market and operating performance should result in a steadily improving financial profile," S&P said.
Goodrich shares added 18 cents to $47.63 in afternoon trading. Shares hit a new 52-week low of $46.58 earlier in the session. In the past 12 months, the stock has traded between $47.21 and $75.74.
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