Leading market positions; Diversification by product, end markets, and geography; The industry's strongest dealer network; and A competitive cost structure. Cyclicality and intense competition; and Working- and fixed-capital intensiveness. The ratings on Caterpillar Inc. reflect the company's strong competitive business position in the cyclical global construction equipment market, its solid cash flow generation, and Standard&Poor's Ratings Services' expectation that it will generate acceptable performance, even at the bottom of an economic cycle. Peoria, Ill.-based Caterpillar is the world's largest producer of construction equipment and leading diesel engine manufacturer. Caterpillar's business profile benefits from very good geographic diversity and reasonable end-market diversity. The company continues to strengthen its business position by introducing new products and expanding its presence in
