Research Update: Westinghouse Air Brake Technologies Corp. Assigned 'A-2' Short-Term Rating; Commercial Paper Program Rated 'A-2'

Locomotive and railcar equipment manufacturer Westinghouse Air Brake Technologies Corp. (Wabtec) established a $2.0 billion commercial paper program, backstopped by its $2.0 billion revolving credit facility. As such, we assigned our ?A-2? short-term issuer credit rating to Wabtec and our ?A-2? short-term issue-level rating to its commercial paper program. The ?A-2? short-term rating reflects our ?BBB? long-term issuer credit rating on the company. The long-term issuer credit rating and stable outlook are unchanged. The stable outlook reflects our view that Wabtec will continue to execute on its backlog and maintain leverage of low-2x over the next 12-24 months. The company's operating performance remains strong, characterized by solid revenue growth and S&P Global Ratings-adjusted EBITDA margins increasing to low- to mid-20%.

...Rating Component Scores Component Foreign currency issuer credit rating ###/Stable/A-2 Local currency issuer credit rating ###/Stable/A-2 Business risk Satisfactory Country risk Low risk Industry risk Intermediate risk Competitive position Satisfactory Financial risk Intermediate Cash flow/leverage Intermediate Anchor ### Modifiers Diversification/portfolio effect Neutral/Undiversified Capital structure Neutral Financial policy Neutral Liquidity Strong Management and governance Neutral Comparable rating analysis Neutral Stand-alone credit profile ###...

Research Update