Moody's rates Praxair notes A2

Moody's Investors Service said it assigned an A2 rating to $500 million of new senior unsecured five-year notes of Praxair, Inc.

Praxair earlier this month announced its intention to acquire NuCO2 Inc. for about $1.1 billion. The proceeds from this transaction will likely reduce the level of commercial-paper outstanding from this transaction.

The outlook is stable.

Praxair's credit metrics will weaken as a result of the impending acquisition, continued heavy capital spending and on-going share repurchases in 2013, Moody's said, but should recover by the end of 2014.

The ratings are supported by the company's relatively stable financial performance, elevated margins, solid operating cash flow and limited exposure to economic downturns relative to other industrial companies, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.