Moody’s rates CNH Industrial notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to the $500 million of notes offered by CNH Industrial Capital LLC.

The agency also affirmed the Ba1 corporate family rating of CNH Industrial NV, the Ba1 long-term rating of Case New Holland Industrial Inc., the Ba1 long-term rating of CNH Industrial Capital and the Ba2 ratings of CNH Industrial Finance Europe SA.

A speculative grade liquidity rating of SGL-3 was assigned.

The outlook is stable.

The Ba1 rating of the CNH Industrial Capital notes reflects a support agreement from CNH Industrial.

The Ba1 corporate family rating of CNH Industrial reflects Moody's expectations that the company's strong competitive position in the global agricultural equipment market and the favorable long-term fundamentals in this sector will enable it to contend with the severe cyclical downturn in the farming sector. This downturn, which the agency expects to last at least through 2016, is pressuring the company's credit metrics.

Nevertheless, Moody’s anticipates that the restructuring initiatives taken by corporate family rating will position it to generate stronger metrics during 2017 even without any improvement in its core agriculture equipment market.

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