S&P: Paccar outlook negative

Standard & Poor's said it revised its outlook on Paccar Inc. and related entities, including Paccar Financial Corp., to negative from stable and affirmed the AA- long-term and A-1+ short-term credit ratings on the companies.

The agency said the outlook revision reflects its belief that the continued deterioration of commercial-vehicle demand in North America and Europe could hinder Paccar's efforts to improve profitability and free cash flow generation toward their historically very strong levels during the next few years.

The affirmation is based on Paccar's conservative financial policies, ample liquidity and track record of managing well through severe downturns while maintaining a healthy financial risk profile, S&P added.

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