NEW YORK—Standard & Poor's Ratings Services downgraded ITT Corp. by two notches on Monday after the technology provider spun off two of its business segments into separate companies.
S&P cut ITT's long-term corporate credit rating to "BBB-" and assigned the White Plains, N.Y., company a "stable" outlook.
ITT sells parts and services to companies in industries including aerospace, energy and transportation. On Monday, it completed the spin-off of its water-management business into Xylem Inc. and its defense segment into Exelis Inc.
The moves will leave ITT with about $2 billion in annual revenue, S&P said. Last year, it had $11 billion in sales.
S&P also lowered ITT's short-term credit rating to "A-3" from "A-2" and gave an "A-3" rating to its new $500 million commercial-paper program.
The ratings agency said, however, that ITT continues to have well-known brands and good aftermarket sales in niche markets with high profit margins. It has a chance to grow in emerging markets, S&P said.
ITT shares rose $1.24, or 2.3 percent, to $46.23 in afternoon trading.
