S&P assigns BBB/A-2 to Fortive

S&P said it assigned its BBB/A-2 corporate credit ratings to diversified industrial products company Fortive Corp.

The outlook is stable.

Fortive is a newly created company that will be formed through the spinoff of Danaher Corp.'s industrial businesses.

"The ratings reflect Fortive's good position as a manufacturer of a diverse set of industrial products and our expectation that the company will pursue a financial policy that is consistent with maintaining moderate debt leverage (including a net adjusted debt-to-EBITDA metric of less than 3x) over time," S&P credit analyst Liley Mehta said in a news release.

"We anticipate that the company will have some capacity for additional leverage at the current rating following the spin-off (debt-to-EBITDA of about 2x), allowing it to pursue a moderately acquisitive growth strategy."

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