Moody's rates Praxair notes A2

Moody's Investors Service said it assigned an A2 rating to Praxair, Inc.'s €600 million senior notes due 2020. The outlook is stable.

Proceeds will be used for general corporate purposes, which may include repayment of commercial paper and share repurchases.

The agency said Praxair's A2 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.

In 2013 credit metrics weakened modestly due to elevated capex, share repurchases and the NuCO2 acquisition, which caused debt to increase faster than EBITDA and cash flow, Moody's said. However, the agency expects that slowing capex in 2014 should allow the organic growth in EBITDA to return metrics to more reasonable levels by the end of 2014.

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