NEW YORK (Standard&Poor's) Oct. 22, 2010--Standard&Poor's Ratings Services said today that its ratings and outlook on Caterpillar Inc. (A/Stable/A-1) are unaffected by the company's announcement that it has entered into an agreement to acquire MWM Holding GmbH (MWM; not rated), a Germany-based maker of alternative engines, for around $810 million. The acquisition enhances Caterpillar's position in the diesel and gas power generation market. This is the second sizeable acquisition announcement by Caterpillar this year, following its purchase of Electro-Motive Diesel Inc. for $925 million in the third quarter. Improving market fundamentals have contributed to solid revenue and profit growth in recent quarters as well as consistent free cash flow generation. Credit measures have improved markedly and
