S&P lifts Ingersoll Rand, rates notes

S&P said it raised all its ratings on Ingersoll Rand Inc. to BBB from BBB- and rated the planned senior unsecured offering BBB, in line with the issuer credit rating.

Ingersoll Rand announced a planned $3.3 billion debt offering to refinance its term loans and to fund most of its $2.325 billion acquisition of ILC Dover, which is expected to close in the second quarter of 2024.

“The upgrade to BBB primarily reflects Ingersoll Rand's continued strong operating performance, coupled with its conservative financial policy, notwithstanding its recent $2.325 billion acquisition of ILC Dover. Furthermore, the upgrade also reflects our favorable view of the company's scale and profitability, as well as it geographic and end-market diversity, which compare favorably with similarly rated capital goods peers. At this point, however, further ratings upside is constrained by the company's aggressive inorganic growth strategy,” S&P said in a press release.

The outlook is stable.

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