S&P rates Emerson Electric notes A

Standard & Poor's said it assigned an A rating to Emerson Electric Co.'s (A/stable/A-1) issuance of $750 million new senior unsecured notes with six-, 10- and 30-year maturities. The notes are a drawdown from Emerson's shelf registration.

Proceeds will be used to repay a portion of its outstanding commercial paper borrowings and for general corporate purposes.

"The ratings on Emerson reflect the company's strong business risk profile as a leading producer of industrial, electrical, and electronic products and systems, as well as its solid liquidity and adequate, although somewhat weakening, cash flow protection measures," S&P analyst Gregoire Buet said in a statement.

Ratings also incorporate Emerson's moderate financial policies, the agency said.

The company's strengths include the diversity of its product lines and end markets and its commitment to new product development, as well as a very competitive cost structure, S&P said.

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