Moody's rates Emerson Electric notes A2

Moody's Investors Service said it assigned an A2 rating to Emerson Electric Co.'s proposed public offering of $400 million of senior notes due 2018.

The outlook is stable.

Proceeds are expected to be used to retire commercial paper balances and for other general corporate purposes.

Emerson's A2 senior long-term and P-1 short-term debt ratings reflect the company's leading market positions, product and business line diversification and historically profitable operating performance with sizable cash flow generation and meaningful cash balances, the agency said.

Ratings also reflect expectation that Emerson will consider employing more debt in its capital structure as free cash flows are consumed by the company's acquisitions and share repurchases, Moody's said.

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