S&P rates Rockwell notes A

S&P said it assigned an A rating to Rockwell Automation Inc.'s proposed $1 billion of unsecured notes, which it will issue in two tranches due 2029 and 2049.

The proceeds will be used to repay outstanding amounts under the company's commercial paper, which had about $630 million outstanding as of Dec. 31, 2018, the agency said.

The proceeds will also be used to fund other capital allocation priorities for 2019, S&P said.

The A issuer credit rating on Rockwell reflects the company's position as a leading provider of discrete industrial automation products and solutions with a large installed base, growing presence in hybrid and process automation and good geographic diversity, the agency said.

Rockwell is expected to maintain leverage in the mid 1x range over the next two years, S&P said.

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