S&P rates Praxair notes A

Standard & Poor's said it affirmed its A long-term and A-1 short-term corporate credit ratings on Praxair Inc. The outlook is stable.

At the same time, the agency said it assigned its A senior unsecured debt rating to the company's $500 million notes due 2022.

"The ratings on Praxair, a leading industrial gas producer, reflect its excellent business profile, the impressive resilience of its cash flows and operating margins and credit metrics that are consistent with our expectations," said S&P credit analyst Liley Mehta in a news release.

"These strengths, along with the substantial percentage of its revenues that are under long-term contracts, allow Praxair to pursue moderate-size acquisitions and repurchase shares while maintaining credit quality. We, however, believe the capital intensity of the business, numerous investment opportunities and the cyclicality of some key industrial end markets remain tempering factors," Mehta said.

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