Navy gives nod to spinoff

The Navy said it's now in a position to support Northrop Grumman's spin-off of its shipbuilding business. The Navy finds Huntington Ingalls Industries Inc. responsible for award of amphibious transport dock ship LPD 26 and guided missile destroyer DDG 113, both contracts currently under negotiation. The Navy's concern with HII's credit rating, driven by its initial debt, has been offset by Northrop Grumman's agreement to relieve HII of first quarter 2011 debts and to provide a starting cash balance of $300 million. (Source: DoD, 03/17/11, Mississippi Press, 03/18/11)