S&P gives A to Praxair notes

Standard & Poor's said it assigned its A senior unsecured debt rating to Praxair Inc.'s proposed $500 million senior unsecured notes due 2019.

The existing ratings on Praxair, including the A long-term corporate credit rating and A-1 short-term rating, are unchanged. The outlook is stable.

S&P said the ratings on Praxair reflect its "excellent" business risk profile and "intermediate" financial risk profile, which incorporate "impressive resilience" of the company's cash flows and operating margins to economic cycles. This factor, along with the substantial percentage of its revenues that are under long-term contracts, allows Praxair to pursue moderate-size acquisitions and repurchase shares while maintaining credit quality.

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

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