Standard&Poor's Ratings Services' ratings on Peoria, Ill.-based 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 its demonstrated ability to remain profitable 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. In 2011, we expect equipment operations sales to grow by more than 35% if Caterpillar closes the Bucyrus acquisition around mid-year, and that profitability will remain good, with an improvement to adjusted EBITDA margin from the 14% level recorded in 2010. This combination should limit deterioration in
