The rating on Peoria, Ill.-based Caterpillar Inc. reflects the company's excellent competitive business position in the cyclical global construction equipment market, its solid cash flow protection, and Standard&Poor's Ratings Services' 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 the next three largest competitors combined. It's also the world's leading diesel engine manufacturer. The company continues to strengthen its business position by introducing new products targeting the small-equipment segment (in which it has low penetration) and by expanding rapidly in China. North American and Western European markets are mature. However, large infrastructure needs in emerging
