Moody's rates Emerson notes A2

Moody's Investors Service said it affirmed Emerson Electric Co.'s A2 senior unsecured and prime-1 short-term ratings.

The agency also said it assigned an A2 rating to a new $500 million issue of 10-year notes and a provisional A2 rating to the unsecured portion of the company's shelf filing.

The outlook is stable.

Emerson's note issuance will refinance a like amount of commercial-paper borrowings, Moody's said, and as such the financing will not change the company's aggregate indebtedness.

Given the higher interest rate on the term obligations, interest expense will increase marginally and cash flow from operations will slightly decrease as a result of the transaction, the agency said.

However, the company's credit metrics will remain strong and representative of the A2 rating category and the financing will beneficially extend its debt maturity profile, Moody's said.

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