Bulletin: Carrier Global Corp.'s Proposed Settlement Payments Will Not Materially Affect Credit Measures

BOISE (S&P Global Ratings) Oct. 22, 2024--S&P Global Ratings today said that Carrier Global Corp.'s (BBB/Positive/A-2) proposed settlements' payments related to litigation associated with the use of aqueous film-forming foam (AFFF) will not materially affect the company's credit measures because the $615 million in payments will be made over five years, and we forecast Carrier's free operating cash flow (FOCF) can comfortably absorb the anticipated cash outflows, particularly given that the company expects insurance payments it receives will fully cover the amount paid under the proposed settlement. Therefore, our ratings and outlook on Carrier are unchanged. The settlements are associated with litigation related to Kidde-Fenwal Inc.'s (KFI) manufacture and sale of firefighting foam, or aqueous film-forming foam, sold by its

...BOISE (S&P Global Ratings) Oct. 22, 2024--S&P Global Ratings today said that Carrier Global Corp.'s (###/Positive/A-2) proposed settlements' payments related to litigation associated with the use of aqueous film-forming foam (AFFF) will not materially affect the company's credit measures because the $615 million in payments will be made over five years, and we forecast Carrier's free operating cash flow (FOCF) can comfortably absorb the anticipated cash outflows, particularly given that the company expects insurance payments it receives will fully cover the amount paid under the proposed settlement. Therefore, our ratings and outlook on Carrier are unchanged. The settlements are associated with litigation related to Kidde-Fenwal Inc.'s (KFI) manufacture and sale of firefighting foam, or aqueous film-forming foam, sold by its National Foam business line from 2005 to 2013. Carrier inherited the stock of KFI in its 2020 spin-off from United Technologies Corp. (UTC; now Raytheon Technologies...

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