Moody's rates Ingersoll-Rand notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to the senior notes of Ingersoll-Rand Global Holding Co. Ltd. based on the unconditional guarantee of Ingersoll-Rand Co. Ltd.

Proceeds will be used to reduce outstandings under Ingersoll's senior unsecured bridge facility, the agency said, noting that this facility, that currently has $3 billion outstanding, was used to help fund Ingersoll's June 2008 acquisition of Trane Inc. for $9.6 billion.

The funding of the acquisition consisted of amounts approximating: more than $3 billion in cash on hand, over $2 billion in new Ingersoll equity issued to Trane shareholders and the remaining balance in over $4 billion in new debt, the agency added.

As a result of this acquisition, Moody's said it lowered Ingersoll's senior unsecured rating to Baa1 from A3 on June 6, adding that the Ingersoll rating recognizes that the $4 billion of acquisition debt will contribute to a significant intermediate-term erosion in the company's credit metrics.

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