Fitch rates Wabtec notes BBB-

Fitch Ratings said it assigned a BBB- rating to Westinghouse Air Brake Technologies Corp.'s (Wabtec) planned issuance of senior unsecured notes.

The proceeds from the notes and a $400 million delayed-draw term loan will be used to fund the cash portion of the planned acquisition of GE Transportation.

The outlook is stable.

“The merger with GE Transportation broadens Wabtec's scale and diversity by adding the largest diesel-electric locomotive manufacturer in North America to Wabtec's existing business as a leading component supplier to the transit and freight rail industries,” the agency said in a news release.

“Wabtec has a global footprint and leading positions in braking equipment, HVAC, pantographs, doors and electronics, with strong aftermarket sales that accounted for 56% of total sales in 2017. The combination is expected to produce synergies of $250 million.”

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