Moody's rates Eaton notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Eaton Corp.'s new euro-denominated senior unsecured notes due 2021 and 2025.

The issuance does not impact other ratings of Eaton, including the Baa1 senior unsecured or P-2 short-term ratings.

The new notes will be issued by an Ireland-based subsidiary of Eaton, Eaton Capital Unlimited Co., Moody's said, and will enjoy substantially the same guarantees of Eaton's outstanding senior unsecured notes.

The outlook is stable.

The ratings reflect the company's sizable and diversified revenue base serving a broad range of industrial customers worldwide, the agency said.

With revenues in excess of $21 billion annually and EBITA margins consistently above 15%, the company generates about $1 billion of free cash flow annually, Moody's said.

The company's commitment to debt reduction also supports its rating profile with debt to EBITDA at about 2.3x as of March 31, the agency said.

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