Moody’s rates Fortive notes Baa1

Moody's Investors Service said it assigned Baa1 ratings to Fortive Corp.’s proposed senior unsecured notes expected to be issued in four tranches estimating $2.25 billion.

At the same time, the agency withdrew the Baa1 issuer rating.

The outlook is stable.

Moody's noted that the senior unsecured bonds will be initially guaranteed by current parent, Danaher Corp. (A2 negative), but the guarantees will be automatically and unconditionally released at the time of the spin-off of Fortive, which is expected on or around July 2.

The Baa1 senior unsecured rating reflects the company's highly diversified product portfolio highlighted by market leading positions in various industrial end markets, the agency said. Fortive has strong margins and return measures, both of which compare favorably to other industrial peers at similar rating levels.

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