S&P affirms Eaton

Standard & Poor's said it affirmed the A corporate credit and unsecured debt ratings and A-1 commercial paper rating on Eaton Corp. and removed all ratings from CreditWatch, where they were placed with negative implications on Dec. 20, following Eaton's announced acquisition plans.

The outlook is negative.

S&P said the affirmation reflects its view that Eaton will return to credit metrics that are within expectations for the A rating. If the company fails to finance a substantial part of the total purchase cost with equity, however, the agency said it could lower the rating.

Ratings reflect the company's strong and improving business risk profile and its good end-market, geographic and product diversity, the agency said.

Ratings also reflect exposure to some cyclical and competitive markets, acquisition-related growth strategy and postretirement benefit liabilities, S&P said.

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