Moody's: Parker Hannifin outlook negative

Moody's Investors Service said it affirmed Parker Hannifin Corp.'s A2 senior unsecured and Prime-1 short-term ratings but revised the outlook to negative from stable.

The agency said the action acknowledges satisfactory liquidity and ongoing debt protection measures resident in the company's business profile but expresses caution that future performance could soften from previous expectations as activity levels and backlogs in multiple end-markets and geographies recede.

In addition, share repurchase activity and acquisitions have resulted in significantly higher funded debt levels going into a period of weaker earnings' prospects, Moody's said, and the combination of higher debt and weaker earnings could cause coverage ratios to decline and leverage ratios to increase over the intermediate term.

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