TEXT - S&P rates Lockheed Martin exchange notes 'A-'

Nov 15 - Standard & Poor's Ratings Services today assigned its 'A-' rating
to Lockheed Martin Corp.'s proposed 4.07% senior unsecured notes due
2042. The company has offered to exchange the proposed notes plus cash for up to
approximately $3.4 billion of certain existing debt maturing between 2023 and
2040. The company will issue the notes under SEC rule 144A with registration
rights.

The ratings on Lockheed Martin reflect our expectations that the company will
be able to generate significant free cash flow despite lower demand from the
U.S. government and that management will balance the allocation of capital
among dividends, share repurchases, acquisitions, and voluntary pension
contributions. The "intermediate" financial risk profile reflects credit
ratios that are somewhat weak for the rating, mostly because of large
postretirement liabilities (most of which are recoverable under government
contracts), but solid cash generation and "strong" liquidity. The "strong"
business risk profile incorporates the company's position as the largest
defense contractor worldwide, a healthy contractual backlog, and good program
diversity.

RELATED CRITERIA AND RESEARCH
-- Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18,
2012
-- Standard & Poor's Standardizes Liquidity Descriptors for Global
Corporate Issuers, July 2, 2010
-- Key Credit Factors: Methodology and Assumptions On Risks In The
Aerospace And Defense Industries, June 24, 2009
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

RATINGS LIST

Lockheed Martin Corp.
Corporate Credit Rating A-/Negative/A-2

New Rating

Lockheed Martin Corp.
Senior Unsecured
4.07% sr unsecd notes due 2042 A-