CHRYSLER <C> AND FINANCIAL UNIT AFFIRMED BY S/P
Standard and Poor's Corp said it
affirmed the debt ratings of Chrysler Corp and Chrysler
Financial Corp following the automaker's agreement to acquire
Electrospace Systems Inc for 367 mln dlrs.
    It said the acquisition could easily be funded from
existing cash balances, still leaving Chrysler with an adequate
level of precautionary cash.
    At March 31 Chrysler had 2.9 billion dlrs of cash and
marketable securities, up from 2.7 billion dlrs at year-end
1986, S and P noted.
    Standard and Poor's affirmed the BBB senior debt of
Chrysler and Chrysler Financial. Also affirmed were the finance
arm's BBB-minus subordinated debt and A-2 commercial paper.
    Electrospace makes communications and electronic systems
for aerospace applications. Because of the company's relatively
small size, the acquisition should have little effect on
Chrysler's balance sheet, S and P said.
 Reuter
