The ratings on Peoria, Ill.-based construction and mining equipment and engine manufacturer Caterpillar Inc. reflect the company's "strong" business risk profile and its "modest" financial risk profile. Standard&Poor's Ratings Services expects that the company will maintain its No. 1 position in the cyclical global construction equipment market and maintain its solid cash flow generation and its demonstrated ability to remain profitable, even at the bottom of an economic cycle. In addition to its manufacturing operations, Caterpillar also has a large captive finance company, Caterpillar Financial Services Corp. (CFSC), whose profitability partially offsets volatile performance in the company's equipment operations. Our forecast for 2013 assumes: We expect continued improvement in the construction equipment segment to offset weakness in the
