* Moody’s Investors Service predicts that the US debt ceiling agreement could result in a downgrading of defense contractors’ credit ratings. Major defense projects like the V-22 Osprey and Littoral Combat Ship (LCS) are identified as vulnerable to quantity reductions, deferrals and even cancellation.
* US debt reduction policies may also prompt European defense contractors to continue their expansion into military technologies deemed safe from spending cuts, as well as cyber-security and energy industry opportunities.
* EADS’ chief financial officer says the company will not be able to reach its target of $10 billion-worth of non-Airbus sales in the US by 2020 without further acquisitions.
* CAE’s first quarter results for fiscal year 2012 report a 14 per cent increase in defense business revenue to $206.4 million compared with $181.8 million for last year’s corresponding quarter. However CAE’s President and Chief Executive acknowledges that the market outlook will become more challenging as governments evaluate their armed forces’ structures.
* RSK-MiG and Sukhoi are to collaborate on the development of a future unmanned combat aerial vehicle (UCAV). The vehicle is expected to be modeled on the Skat UAV demonstrated at the MAKS air show in 2007.
* The US Air Force awards Honeywell an $11.5 million contract to provide heat stack and brake components for F-15 fighters.
* The Hong Kong Commercial Daily publishes a picture apparently showing the final preparations for the maiden voyage of China’s first aircraft carrier.