S&P rates Illinois Tool Works notes A+

Standard & Poor's said it assigned an A+ rating to Illinois Tool Works Inc.'s (A+/stable/A-1) proposed $1.0 billion senior unsecured notes offering with 10- and 30-year maturities.

The outlook is stable.

Proceeds will be used to repay a portion of outstanding commercial paper borrowings.

Ratings reflect the company's strong business profile as a globally diversified industrial manufacturer, its track record of solid free cash flow generation and its modest financial profile, the agency said.

The company's end-market cyclicality and its long-standing acquisitiveness partially temper these factors, the agency noted.

The company's adjusted total debt-to-EBITDA ratio is about 1.5x.

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