Moody's: Illinois Tool notes A1

Moody's Investors Service said it assigned A1 and provisional A1 ratings to Illinois Tool Works, Inc.'s new senior unsecured notes and its senior unsecured shelf filing.

Proceeds from the $1.1 billion of notes due in 2042 will initially be used to refinance existing commercial paper outstandings, leaving funded debt substantially unchanged.

Illinois Tool's current long-term rating of A1 and short-term rating of Prime-1 were affirmed.

The outlook remains negative.

In mid-August, Illinois Tool had roughly $1.4 billion of commercial paper outstanding, up slightly from balances at the end of June.

Moody's said the issuance of $1.1 billion of 30-year notes will beneficially extend the company's debt maturity profile but will increase future interest expense given the higher coupon on the notes.

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