Standard&Poor's Ratings Services' ratings on construction equipment and diesel engine manufacturer Caterpillar Inc. reflect the company's strong competitive business position in the cyclical global construction equipment market, its solid cash flow generation, and our expectation that it will perform acceptably, even at the bottom of an economic cycle. We expect the global economic rebound to support continued increases in demand for Caterpillar's products in 2011, from a trough in 2009. Caterpillar's credit measures have improved and are near levels Standard&Poor's expects for the current rating, after deteriorating significantly in 2009. We expect pension underfunding to increase at year-end, but credit measures are on a path consistent with our expectations for the rating in the near term.
