S&P puts ABB on positive watch

Standard & Poor's said it placed its long-term BBB+ credit rating on ABB Ltd. and related entities on CreditWatch with positive implications. The short-term credit ratings of A-2 and the Nordic commercial paper ratings of K-1 were affirmed.

The CreditWatch placement reflects the potential for a higher credit rating created by a combination of the group's improved financial profile and capital structure, strong business risk profile and good business prospects, S&P said.

The agency said it expects to resolve the CreditWatch status in the short term following discussion with management on the group's strategic and financial policy objectives. Any upward revision of the long-term rating is likely to be limited to one notch.

The ratings reflect the group's strong business risk profile with leading global positions, strong technology bases and good earnings diversification in its core businesses, S&P said. They also reflect the group's intermediate financial position and liquidity positions, the agency added.

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