Fitch affirms Eaton

Fitch Ratings said it affirmed Eaton Corp.'s long- and short-term ratings at A- and F2, respectively. Fitch also affirmed Eaton's A- bank credit facilities and senior long-term debt and F2 commercial paper.

The outlook is stable.

The affirmation of Eaton's ratings reflects the company's product and geographic diversification, growing presence in emerging markets, effective cost controls, solid liquidity position and demonstrated ability to integrate acquisitions, the agency said.

Rating concerns include cyclical end-markets such as nonresidential construction, net pension obligations, raw material costs and the potential negative impact on leverage from debt-funded acquisitions, the agency said. However, this concern is mitigated by Eaton's strategy of using equity for large acquisitions when necessary.

The debt-to-EBITDA ratio at March 31 was 1.9 times.

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