Fitch changes Eaton outlook

Fitch Ratings said it affirmed the long-term issuer default ratings for Eaton Corp. plc and Eaton Corp. at BBB+.

The agency also affirmed the issuer default ratings for Eaton Electric Holdings LLC and Eaton Capital Unlimited Co. at BBB+ and affirmed the short-term issuer default ratings and commercial paper ratings for Eaton and some subsidiaries at F2.

The outlook was changed to positive from stable.

Fitch said the positive outlook reflects an expectation that Eaton will generate improving margins and produce solid free cash flow and that leverage and free cash flow metrics could improve to levels that would support an upgrade of the company's long-term ratings within the next 18 to 24 months in the absence of debt-funded acquisitions or share repurchases.

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