S&P: Crane unchanged

Standard & Poor's said that Crane Co.'s (BBB/stable) announcement that it is taking a non-cash after-tax charge of $250 million related to its asbestos liabilities has no immediate impact on the rating or outlook on the company.

Crane has extended the review period for pending and future asbestos liabilities to 2017 from 2011, the agency said, adding that the increase in the gross liability, offset by insurance proceeds and tax benefits, is in line with its previously stated perspective that the narrow period to 2011 may understate the potential liability and that the ratings incorporated a longer view and potentially larger liability.

In addition, although this liability will likely continue to be a drain on the company, Crane's stronger cash flow generation should be adequate to service outlays in the near future, S&P added.

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