S&P puts Eaton on watch

Standard & Poor's said it placed the A corporate credit rating and senior unsecured rating, and A-1 commercial paper rating on Eaton Corp. on CreditWatch with negative implications following its announcement that it would acquire the Moeller Group and Phoenixtec Power Co. Ltd. for $2.8 billion.

S&P said it expects the acquisitions to complement Eaton's existing power distribution and control business and its power quality business while expanding global market positions.

The company will initially likely fund the deals with debt then fund the deals with an equity component in a reasonable timeframe, according to the agency.

© 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.