L-3 Communications Corporation -- Moody's says L-3 Communications' charges resulting from internal accounting review more costly than initially expected, a credit negative

New York, September 26, 2014 -- Moody's Investors Service said L-3 Communications Corporation's (Baa3/stable, "L-3") costs related to improper accounting in its Aerospace Systems segment will be at least $77 million more than the company indicated previously (expanded to $164 million from $87 million). The charges stemming from the Logistics Solutions sector of the Aerospace Systems segment still comprise the majority of income revisions, but the Platform Systems sector also now represents a significant source of revisions as well. L-3 has stated that it will need additional time to complete its review and file its Form 10-Q for the period ended June 27, 2014. Operating profits for the second half of 2014 will be lowered by at least an additional $34 million, beyond what had been previously indicated. The compliance waiver, under the bank facility that L-3 uses regularly, extends to October 10, 2014. For further information please see www.moodys.com.

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