Research Update: Johnson Controls International Ratings Affirmed, Off CreditWatch On Power Solutions Sale And Expected Debt Reduction

On May 1, 2019, Johnson Controls International PLC (JCI) released its earnings for the second fiscal quarter ended March 31, 2019, and also indicated that it completed the divestiture of its power solutions unit to Brookfield Business Partners L.P. and others. We are affirming our ratings on JCI, including the 'BBB+' long-term issuer credit rating, and removing them from CreditWatch, where they were placed with negative implications on Nov. 14, 2018. The stable outlook reflects our view that healthy demand for JCI's building products and services will drive revenue and profit growth, and combined with its anticipated $3.4 billion of debt reduction, will allow for a capital structure and credit measures appropriate for the rating despite its smaller scale. The

...- On May 1, 2019, Johnson Controls International PLC (JCI) released its earnings for the second fiscal quarter ended March 31, 2019, and also indicated that it completed the divestiture of its power solutions unit to Brookfield Business Partners L.P. and others. - We are affirming our ratings on JCI, including the '###+' long-term issuer credit rating, and removing them from CreditWatch, where they were placed with negative implications on Nov. 14, 2018. - The stable outlook reflects our view that healthy demand for JCI's building products and services will drive revenue and profit growth, and combined with its anticipated $3.4 billion of debt reduction, will allow for a capital structure and credit measures appropriate for the rating despite its smaller scale....

Research Update