S&P gives A to Parker-Hannifin notes

Standard & Poor's said it assigned its A issue-level rating to Parker-Hannifin Corp.'s proposed up to $1.5 billion senior unsecured notes.

The notes will be sold in three tranches.

The corporate credit rating and stable outlook on Parker-Hannifin remain unchanged.

S&P expects the company to use proceeds from the proposed debt issuance to initially repay outstanding commercial paper and for general corporate purposes, which it believes will augment and partly fund share repurchases.

The agency believes that Parker-Hannifin has the debt capacity to buy back shares as proposed under a newly authorized program and that it will remain disciplined while pursuing bolt-on acquisitions. S&P said it expects the company to continue a balanced approach to capital allocation while adhering to credit metrics that support the "modest" financial risk profile assessment.

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