S&P affirms Ingersoll-Rand

Standard & Poor's said it affirmed its BBB+ corporate credit rating and senior unsecured debt ratings and its A-2 CP rating on Ingersoll-Rand Co Ltd.

The ratings affirmation follows the announcement that Ingersoll-Rand will acquire Trane Inc. for cash and stock valued at $10.1 billion, S&P said, noting that consideration is expected to include new and assumed debt of $4.9 billion.

The outlook is stable.

The agency said it expects the acquisition to enhance Ingersoll-Rand's business profile, adding to the company a leading global position in commercial heating, ventilation and air conditioning markets with $7.4 billion of revenues.

The acquisition, the financing of which will include substantial new and assumed debt, will increase financial leverage to levels that are stretched for the current rating, S&P noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.