Caterpillar Inc. has announced its plan to acquire mining equipment maker Bucyrus International Inc. (Bucyrus) for around $8.6 billion, including Bucyrus' net debt. The transaction will be funded with cash from the balance sheet, debt, and up to $2 billion of equity. We are affirming our ratings on Caterpillar, including the 'A' corporate credit rating. The stable outlook reflects our belief that a more-favorable economic environment and Caterpillar's profitability improvements should allow the company to return credit measures to levels commensurate with our expectations at the current rating in 2012, following some deterioration in 2011 arising from the partly debt-financed acquisition. On Nov. 15, 2010, Standard&Poor's Ratings Services affirmed its ratings, including the 'A' long-term corporate credit and
