DBRS confirms CNH

DBRS said it confirmed the senior debt ratings of CNH Global NV and Case New Holland Inc. at BBB (low).

The confirmation follows the change in the company's ownership from Fiat SpA to Fiat Industrial SpA as a result of the demerger of the Fiat group, the agency said.

With the demerger, all of the company's financing with Fiat treasury subsidiaries were repaid or assigned to Fiat Industrial, the agency added. With respect to the new parent company, DBRS considers Fiat Industrial's ownership to be neutral to the company's ratings; noting that as CNH continues to be 11% held by public shareholders, it remains unlikely that the company would dividend substantial funds to Fiat Industrial.

The ratings reflect CNH's sound business profile given its position among the global leaders in agricultural equipment in addition to being a major construction equipment manufacturer, the agency added.

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