The ratings on Caterpillar Inc. reflect the company's strong competitive business position in the cyclical global construction equipment market, its solid cash flow generation, and Standard&Poor's Ratings Services' expectation that the company will generate acceptable performance, even at the bottom of an economic cycle. Peoria, Ill.-based Caterpillar is the world's largest producer of construction equipment and a leading diesel engine manufacturer. Caterpillar's business profile benefits from very good geographic diversity and reasonable end-market diversity. The company continues to strengthen its business position by introducing new products and by expanding its presence in emerging economies. North American and Western European markets are mature. However, large infrastructure needs in emerging countries should bolster Caterpillar's long-term growth prospects. Caterpillar has expanded
