S&P rates Snap-on notes A-

Standard & Poor's said that it assigned Snap-on Inc.'s proposed issuance of $250 million of senior notes due 2018 an A- rating.

The outlook is stable.

The proceeds will be used for general corporate purposes.

The rating reflects the expectation that the company's credit measures will continue to strengthen in 2011, while retaining adequate capacity to fund its growing U.S. finance receivable portfolio or external growth initiatives, S&P said. The rating also considers the company's modest financial risk profile, conservative financial policies and satisfactory business profile.

The rating is constrained by Snap-on's weakened credit measures due to increased debt levels to fund its domestic credit operations and its relatively significant pension obligations, the agency said.

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