Raytheon to move headquarters to Arlington, Va.; S&P provides downbeat view on earnings, cash flow

Shares of Raytheon Technologies Corp. fell 0.4% in morning trading Tuesday, after the aerospace and defense company announced plans for a new global headquarters and received a negative comment from credit rating agency S&P Global Ratings. Raytheon said ahead of the open that it will establish its global headquarters in Arlington, Va., which is just outside Washington, D.C. The company, currently based in Waltham, Mass., said the new headquarters “increases agility” in supporting U.S. government and commercial aerospace customers. In addition, Raytheon said the D.C. area serves as a “convenient travel hub” for its customers and employees. Separately, S&P Global Ratings affirmed on Tuesday Raytheon’s A- credit rating, but said the negative outlook on the rating reflects its view that credit ratios will be weaker than expectations over the next two years. “[Raytheon’s] earnings and cash flow will likely be lower than previously forecast because of higher cash taxes and uneven recovery in air travel and aircraft production,” S&P said in a research note. The stock has rallied 12.5% year to date, while the SPDR Industrial Select Sector ETF has shed 10.2% and the S&P 500 has dropped 14.0%.

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