Fitch affirms Whirlpool

Fitch Ratings said it affirmed Whirlpool Corp.'s long-term issuer default rating at BBB and short-term issuer default rating at F2 following news that its Brazilian subsidiary has reached an agreement to settle all claims related to a longstanding dispute in Brazil with BancoSafra SA.

This dispute relates to a $25 million unauthorized loan entered into in 1989 by an employee of Embraco, which subsequently became a part of Whirlpool's Brazilian subsidiary.

The agency also said it affirmed the company's commercial paper rating at F2, senior unsecured notes at BBB and bank revolving credit facility at BBB.

The agency also affirmed Maytag Corp.'s long-term issuer default rating at BBB and senior unsecured notes at BBB, along with Whirlpool Finance BV's short-term issuer default rating at F2 and commercial paper rating at F2.

The outlook is stable.

Whirlpool's subsidiary agreed to settle with BancoSafra for R$959 million and the payment will be made in two installments, Fitch said.

This settlement amount is within the range of previously disclosed accrual and previously disclosed maximum exposure, the agency said.

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