S&P rates Praxair notes A

Standard & Poor's said it assigned an A senior unsecured debt rating to Praxair Inc.'s proposed $400 million senior unsecured notes due 2015.

The A long-term corporate credit rating and A-1 short-term rating are unchanged.

The outlook is stable.

Proceeds will be used to repay short-term debt and for general corporate purposes.

Ratings reflect an excellent business profile, the impressive resilience of cash flows and operating margins, and credit metrics that are consistent with expectations at the current ratings, the agency said.

These strengths, coupled with the substantial percentage of revenue under long-term contracts, allow Praxair to pursue moderate-size acquisitions and make share repurchases while maintaining credit quality measures, the agency noted.

The capital intensity of the business, numerous investment opportunities and the cyclicality of some key industrial end markets remain tempering factors, S&P said.

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