S&P rates Caterpillar notes A

Standard & Poor's said it assigned an A rating to Caterpillar Financial Services Corp.'s 1 billion renminbi issuance of two-year notes.

The notes are being drawn from Cat Financial's medium-term note program and represent the company's first renminbi-denominated medium-term note issuance.

Proceeds will be used to support financing options for Caterpillar customers in China through its subsidiary Caterpillar (China) Financial Leasing Co. Ltd.

Ratings on Cat Financial are the same as those for parent company Caterpillar Inc. (A/stable/A-1). S&P said it sees both units as a single economic entity, given their strategic importance to each other, Caterpillar's ability to influence Cat Financial's actions, and the likelihood that, if Caterpillar were to file for bankruptcy, Cat Financial would be included.

"The ratings reflect Caterpillar's strong competitive business position in the cyclical global construction equipment market, its solid cash flow protection, and our expectation that the company will generate acceptable earnings measures, even at the bottom of an economic cycle," S&P analyst Dan Picciotto said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.