S&P cuts Paccar

Standard & Poor's said it lowered its long-term corporate credit ratings on Paccar Inc. and related entities to A+ from AA- and the short-term ratings to A-1 from A-1+.

The outlook was revised to stable from negative.

The downgrades reflect primarily the variability of global demand and high volatility of earnings in the global heavy-truck industry, which have led to a prolonged period of lower sales and margins for the industry, S&P said.

The company's profitability has improved in recent quarters, the agency said, and this trend is expected to continue, albeit gradually, through 2011 as truck sales in the United States, Europe and other markets recover.

© 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.