Raytheon's ratings likely to be upgraded

Fitch Ratings affirmed Raytheon Co.’s investment-grade ratings and said it may upgrade the Waltham defense contractor’s levels in the next year.

Fitch reiterated its BBB+ rating and bumped the outlook to ‘‘positive,’’ which means an increase is likely in the next eight to 12 months.

Ratings indicate a company’s creditworthiness and are used to determine its costs of borrowing.
The agency based the move on Raytheon’s ‘‘strong credit metrics, conservative financial policies, significant financial flexibility, and Fitch’s expectations for continued financial improvement in 2008.’’

The investment-grade rating reflects the high military spending in the United States and international revenue growth.
(AP)