Moody's affirms Emerson

Moody's Investors Service said it affirmed Emerson Electric Co.'s A2 unsecured and Prime-1 short-term ratings and applied provisional A2 and provisional Baa1 ratings to the company's updated shelf filing for senior unsecured and preferred securities, respectively.

The agency said that the A2 rating was also assigned to three unsecured note offerings under the shelf which aggregated $750 million.

The actions consider Emerson's strong business profile and ongoing levels of free cash flow generation, but also recognize that weakness across its global end-markets may cause coverage and leverage metrics to soften over the next year or so from fairly robust levels achieved in the recent past, Moody's said.

Strong balance sheet liquidity in addition to free cash flow is expected to provide sufficient resources to navigate through the downturn, the agency said.

The outlook is unchanged at stable.

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