Fitch affirms Eaton

Fitch Ratings said it affirmed Eaton Corp.'s issuer default rating at A-, senior unsecured bank credit facilities at A-, senior unsecured long-term debt at A-, short-term issuer default rating at F2 and commercial paper at F2.

The outlook has been revised to stable from negative.

The outlook revision reflects Eaton's improving financial results and expectations that leverage will decline further as Eaton's end-markets continue to recover, Fitch said.

The company's credit metrics remain weak compared to other issuers with A- ratings, the agency said.

But leverage is substantially better than peak levels during 2009, and Fitch said it estimates that its debt-to-EBITDA ratio could decline to slightly above 2x by the end of 2010 and could approach 1.5x in 2011, close to Eaton's historical levels.

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