Fitch assigns F2 on Eaton Capital

Fitch Ratings said it affirmed the long-term issuer default ratings on Eaton Corp. plc and indirect subsidiary Eaton Corp. at BBB+.

The agency also said it affirmed the issuer default rating on Eaton Capital Unlimited Co. at BBB+ and assigned a short-term issuer default rating and commercial-paper rating of F2 to the company.

The outlook is stable.

The ratings consider the company's product and geographic diversification, which mitigates cyclicality in its industrial end markets, Fitch said.

The agency said it estimates that Eaton's revenue growth during the two-year period between 2015 and 2016 has weakened slightly.

Sales declines are concentrated in the heavy duty truck, oil and gas, agricultural equipment and industrial markets, Fitch said, and partly offset by growth in commercial aerospace and commercial construction.

There also are signs that lower demand in Eaton's hydraulics business may begin to stabilize, the agency said.

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