New York, May 28, 2013 -- Moody's Investors Service assigned Baa2 ratings to the proposed new senior unsecured notes to be issued by Northrop Grumman Corporation. According to the company, net proceeds from the offering are expected to be utilized for general corporate purposes, including debt repayment, share repurchases, pension plan funding, acquisitions and working capital. However, since this debt issuance follows the company's announced $4 billion incremental share repurchase authorization and corresponding plan to retire 25 percent of its outstanding shares by the end of 2015, Moody's expects that any proceeds above and beyond that required to refinance the $850 million of existing debt that is being called would likely be used to fund future share repurchases.
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