The ratings on Peoria, Ill.-based Caterpillar Inc. reflect the company's excellent competitive business position in the cyclical global construction equipment market, its solid cash flow protection, and the expectation that the company will generate acceptable earnings measures, even at the bottom of an economic cycle. Caterpillar is by far the world's largest producer of construction equipment, with more sales than its three largest competitors combined. It is also the world's leading diesel engine manufacturer. The company continues to strengthen its business position by introducing new products and by expanding rapidly in China. North American and Western European markets are mature. However, large infrastructure needs in emerging countries, high commodity prices which are spurring increased mining activity, and strong demand for
