Johnson Controls International PLC Ratings Affirmed On Consistent Performance And Elevated Backlog, Outlook Stable

We anticipate global building products and solutions provider Johnson Controls International PLC (JCI) will maintain its leading position in the large global applied heating, ventilation, and air conditioning (HVAC) market, as well as its good scale and operational diversity. Further, we forecast the company's operating performance and financial policy will continue to support S&P Global Ratings-adjusted leverage of about 3x over the next 12-24 months. Therefore, we affirmed all of our ratings on JCI, including our 'BBB+' issuer credit rating. The stable outlook reflects our expectation that good commercial HVAC demand and higher pricing over the next 12-24 months will support increasing EBITDA and solid free operating cash flow (FOCF), such that the company's S&P Global Ratings-adjusted leverage remains in

...May 9, 2023 - We anticipate global building products and solutions provider Johnson Controls International PLC (JCI) will maintain its leading position in the large global applied heating, ventilation, and air conditioning (HVAC) market, as well as its good scale and operational diversity. - Further, we forecast the company's operating performance and financial policy will continue to support S&P Global Ratings-adjusted leverage of about 3x over the next 12-24 months. - Therefore, we affirmed all of our ratings on JCI, including our '###+' issuer credit rating. - The stable outlook reflects our expectation that good commercial HVAC demand and higher pricing over the next 12-24 months will support increasing EBITDA and solid free operating cash flow (FOCF), such that the company's S&P Global Ratings-adjusted leverage remains in the high 2x-3x range. SAN FRANCISCO (S&P Global Ratings) May 9, 2023--S&P Global Ratings today took the rating actions listed above. JCI benefits from its solid position...

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