Bulletin: Westinghouse Air Brake Technologies' Q4 Results Were Largely In Line With Expectations And Bode Well For Deleveraging

NEW YORK (S&P Global Ratings) Feb. 25, 2019-- Westinghouse Air Brake Technologies Corp. (Wabtec; BBB/Negative/--) reported fourth-quarter 2018 results that were largely in line with our expectations. Wabtec also announced that its merger with General Electric's Transportation division (GET) has closed, and provided earnings guidance for fiscal 2019. While debt leverage measured by total debt to EBITDA will exceed 3.0x in 2019 following the merger with GET, we still expect Wabtec will make progress towards deleveraging in 2019 by deploying the bulk of its free cash flow towards debt reduction. Our expectations for the rating are based on Wabtec reducing debt leverage to below 3.0x by 2020, which we believe is still achievable based on the guidance for 2019 and

...NEW YORK (S&P Global Ratings) Feb. 25, 2019-- Westinghouse Air Brake Technologies Corp. (Wabtec; ###/Negative/--) reported fourth-quarter 2018 results that were largely in line with our expectations. Wabtec also announced that its merger with General Electric's Transportation division (GET) has closed, and provided earnings guidance for fiscal 2019. While debt leverage measured by total debt to EBITDA will exceed 3.0x in 2019 following the merger with GET, we still expect Wabtec will make progress towards deleveraging in 2019 by deploying the bulk of its free cash flow towards debt reduction. Our expectations for the rating are based on Wabtec reducing debt leverage to below 3.0x by 2020, which we believe is still achievable based on the guidance for 2019 and our expectations. We'll continue to monitor the progress towards integrating GET, the realization of expected synergies, and free cash flow generation. As such, our ratings on Wabtec remain unchanged. This report does not constitute...

Bulletin