TEXT-S&P rates Precision Castparts proposed senior notes 'A-'

Mon Dec 17, 2012 11:39am EST

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Dec 17 - Standard & Poor's Ratings Services today assigned its 'A-' rating
to Precision Castparts Corp.'s (A-/Stable/A-1) proposed issuance of
senior unsecured notes. The company plans to issue up to a total of $3 billion
of three-, five-, 10-, and 30-year notes, and will use the proceeds to fund the
pending acquisition of Titanium Metals Corp. (Timet; not rated) and general
corporate purposes. Precision Castparts announced the acquisition last month and
expects it to close by the end of the year. 

We affirmed our ratings on Precision Castparts on Nov. 12, 2012, citing our 
expectations that credit ratios, which will decline materially from currently 
very strong levels following the proposed acquisition, will return to levels 
more appropriate for the ratings over the next 12-18 months. We expect that 
the strong commercial aerospace market and the company's very successful 
history of integrating and improving acquired operations should result in 
funds from operations to debt above 60% by the end of fiscal 2014 (ending 
March 31, 2014), supporting our "minimal" financial risk profile assessment. 
We also believe that the acquisition of Timet will improve Precision 
Castparts' competitive position modestly, but not enough to change our already 
"satisfactory" business risk assessment.

RELATED CRITERIA AND RESEARCH
     -- Precision Castparts 'A-/A-1' Ratings Affirmed On Titanium Metals 
Acquisition; Outlook Remains Stable, Nov. 12, 2012


RATINGS LIST 

Precision Castparts Corp.
 Corporate Credit Rating            A-/Stable/A-1

New Rating

Precision Castparts Corp.
 Senior unsecured 
  3-year notes                      A-
  5-year notes                      A-
  10-year notes                     A-
  30-year notes                     A-

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
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