Bulletin: Caterpillar Inc.'s Weaker 2015 Results And Lowered 2016 Sales Guidance Reduce Rating Headroom

NEW YORK (Standard&Poor's) Jan. 28, 2016--Standard&Poor's Ratings Services said today that its ratings and outlook on Caterpillar Inc. (A/Stable/A-1) are not immediately affected by the company's recently reported fourth-quarter earnings and lowered 2016 revenue guidance. Our ratings on Caterpillar incorporate the inherent cyclicality of the company's commodity price-driven businesses and our expectation that the headwinds the company has been experiencing in 2015 will continue into 2016, albeit to a lesser extent. The expected decline in the company's revenue and profitability in 2016 (primarily due to persistently low commodity prices and weaker economic conditions in developing countries, both of which continue to pressure the demand for construction and mining equipment) will lessen its headroom under our current

...We have determined, based solely on the developments described herein, that no rating actions are currently warranted. Only a rating committee may determine a rating action and, as these developments were not viewed as material to the ratings, neither they nor this report were reviewed by a rating committee....

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