S&P: Ingersoll-Rand outlook negative

Standard & Poor's said it revised its outlook on Ingersoll-Rand Ltd. and related entities to negative from stable and affirmed all ratings on the company, including the BBB+ long-term corporate credit rating and A-2 commercial paper rating.

The agency said the negative outlook reflects Ingersoll-Rand's recent announcement of significantly weaker-than-expected earnings in the fourth quarter and the potential for delay in meeting S&P's credit metric expectations for the rating.

The company has $950 million remaining on a bridge loan facility due June 2009. S&P said that while repayment is not a rating concern, the agency believes refinancing issues could cause the company to draw on existing revolving credit facilities, which would leave it with minimal lines available.

The ratings on Ingersoll-Rand are supported by the company's strong business profile, bolstered by the acquisition of Trane Inc., S&P said. With Trane, Ingersoll-Rand's business profile has good market and geographic diversity, a variety of strong or leading market positions and good recurring revenues.

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