Moody's rates Cummins notes A3

Moody's Investors Service said it assigned an A3 rating to Cummins, Inc.'s proposed offering of roughly $1 billion of senior unsecured notes and affirmed the company's existing A3 senior unsecured rating and stable outlook.

Moody's also assigned a provisional A3 rating to the company's shelf registration for senior unsecured debt.

Proceeds from the new notes will be used for the acquisition of the equity that Cummins does not already own in its partially owned U.S. and Canadian distributors, as well as for general corporate purposes. The planned acquisitions will likely result in Cummins owning 100% of its U.S. and Canadian distribution operations.

Moody's said the rating assignment reflects its view that the distribution acquisitions will further strengthen Cummins' competitive position in North America and will enable the company to sustain credit metrics that are strongly supportive of the A3 rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.