Fitch affirms Caterpillar

Fitch Ratings said it affirmed Caterpillar Inc.'s issuer default rating at A, short-term issuer default rating at F1, senior unsecured notes at A and commercial paper at F1 and Caterpillar Financial Services Corp.'s issuer default rating at A, short-term issuer default rating at F1, senior unsecured notes at A and commercial paper at F1.

The outlook is stable.

The affirmation reflects the improving global economic outlook, the benefits of cost reductions last year, a solid liquidity position and improving credit metrics, according to the agency.

Ratings continue to reflect the company's competitive products, diversified customer base, global manufacturing footprint and strong international dealer network, the agency said.

Credit concerns include high leverage, cyclical end markets, significant cash outlays to its U.S. pension plan, unfavorable product mix this year related to declining engine sales, weak U.S., Europe and Japan end markets, and the eventual reinstatement of the company's share repurchase program, the agency noted.

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