Bulletin: Caterpillar Inc. Ratings Unaffected By First-Quarter Results And Lowered 2016 Sales And Earnings Guidance

NEW YORK (Standard&Poor's) April 22, 2016--Standard&Poor's Ratings Services said today that its ratings on Caterpillar Inc. (A/Stable/A-1) are unaffected by the company's reported first-quarter 2016 results and lowered full-year 2016 revenue and earnings guidance. The company reported declining sales across all of its regions and business segments in the first quarter, largely due to declining demand for construction and mining equipment and products used in the oil and gas and transportation markets. Caterpillar's results were also negatively affected by unfavorable price realization and foreign-exchange translation costs during the quarter. Because of this weakness, we expect that the company's credit measures will be at the lower end of our expected range (including a funds from operation [FFO]-to-debt

...NEW YORK (Standard & Poor's) April 22, 2016--Standard & Poor's Ratings Services said today that its ratings on Caterpillar Inc. (A/Stable/A-1) are unaffected by the company's reported first-quarter 2016 results and lowered full-year 2016 revenue and earnings guidance. The company reported declining sales across all of its regions and business segments in the first quarter, largely due to declining demand for construction and mining equipment and products used in the oil and gas and transportation markets. Caterpillar's results were also negatively affected by unfavorable price realization and foreign-exchange translation costs during the quarter. Because of this weakness, we expect that the company's credit measures will be at the lower end of our expected range (including a funds from operation [FFO]-to-debt ratio of about 30% or more) this year. This volatility in Caterpillar's credit measures is consistent with what we have incorporated into our ratings on the company given its exposure...

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