Fitch: ABB view to stable

Fitch Ratings said it revised the outlook on ABB Ltd.'s long-term issuer default rating to stable from positive and affirmed it at BBB+.

The agency also said it affirmed the rating on ABB's senior unsecured notes at BBB+, short-term issuer default rating at F2 and ABB International Finance Ltd.'s senior unsecured rating at BBB+. The commercial paper program issued by ABB Financial Services AB is affirmed at F2.

The outlook change follows new that the company plans to acquire Baldor Electric Co. for $4.2 billion using existing cash balances, Fitch said.

This acquisition will moderately weaken ABB's credit metrics, and therefore makes an upgrade of the ratings less likely in the near term, the agency said.

Fitch also said it has broader concerns about ABB's acquisition strategy - notably the timing and size of recently announced acquisitions.

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