CENTENNIAL (S&P Global Ratings) Sept. 23, 2021--S&P Global Ratings said today that the planned acquisition of the equity stake of Zardoya not already owned by U.S.-based elevator and escalator manufacturing, installation, and service company Otis Worldwide Corp. (BBB/Stable/A-2) is credit negative because it would reduce the company's cushion under its credit metrics to absorb potential weakness in its end-market demand or cost (raw material or labor) inflation. Otis has announced a tender offer for the 49.99% interest in joint venture Zardoya Otis S.A. that it does not already own for an offer price of €1.65 billion. Otis consolidates the joint venture so the proposed transaction would not affect S&P Global Ratings-adjusted EBITDA but would significantly reduce dividends paid to noncontrolling
