Moody's rates ABB bonds A2

Moody's Investors Service said it assigned an A2 rating to $2.5 billion of bonds to be issued by ABB Finance (USA) Inc. under its recently filed U.S. debt shelf registration.

The issuer under this program is a newly formed finance subsidiary, wholly owned by ABB Ltd., which will guarantee the bonds.

Proceeds will be used for financing part of the purchase price of the acquisition of Thomas & Betts in the United States.

The rating is in line with other finance subsidiaries of ABB Ltd.

The outlook is stable.

ABB's A2 rating reflects its strong financial and liquidity profile, its relatively resilient performance throughout the recent economic downturn and expectation that the group will - even in the likely event of further cash- or debt-financed external growth activities - continue to exhibit credit metrics that are in line with the A2 rating, according to the agency.

The ratings for ABB also consider the group's strong business profile and the diversified nature of its operations, the agency said.

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