Fitch eyes Ingersoll Rand positively

Fitch Ratings said it placed the BBB- long-term issuer default ratings and all issue-level ratings of Ingersoll Rand Inc. (IR) and its wholly-owned subsidiaries, Gardner Denver, Inc. and Ingersoll-Rand Services Co. on rating watch positive.

The RWP placement reflects the expectation that Ingersoll Rand's partly-secured debt structure will become fully unsecured around the time the company funds the planned acquisition of ILC Dover, LP which was recently announced, the agency said.

“An unsecured debt structure is consistent with BBB category issuers and would further improve financial flexibility,” Fitch said in a press release.

The agency said it aims to resolve the RWP within the next three to six months when Ingersoll Rand issues unsecured debt that would make funds available to repay Gardner Denver's tranche B-2 secured dollar term loan and Ingersoll Rand Services's tranche B-1 secured dollar term loan. Fitch expects any upgrade would be limited to one notch.

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