NEW YORK (AP) -- Fitch Ratings Monday affirmed and removed a "Rating Watch Negative" rating on military contractor Alliant Techsystems Inc. and said its outlook is now "Stable."The change comes after Canadian regulators Thursday rejected ATK's proposed acquisition of the space and satellite divisions of MacDonald, Dettwiler and Associates Ltd., a Canadian space technology company. Alliant had made a $1.3 billion takeover bid in April.
As a result of the transaction's termination, Alliant will take a pretax fiscal fourth-quarter charge of $6.6 million.
Fitch said that the breakdown of the deal should not lead to credit concerns as Alliant's has solid free cash flow and high government spending for munitions and missile defense. The company is also a sole-source provider for more than two-thirds of its sales to the government, Fitch noted.
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