S&P rates Praxair notes A

Standard & Poor's said it assigned an A senior unsecured debt rating to Praxair Inc.'s proposed $500 million senior unsecured notes due 2018.

The proceeds will be used to repay debt, repurchase shares and general corporate purposes.

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.

The ratings reflect the company's 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, S&P said.

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, the agency said.

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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