Standard&Poor's Ratings Services' ratings on Peoria, Ill.-based construction and mining equipment and diesel engine manufacturer Caterpillar Inc. reflect our expectation that the company will maintain its 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 a continuing fragile global economic rebound to support increases in demand for Caterpillar's products in 2012, albeit at a slower pace than in 2011. In 2012, we expect equipment operations sales growth to exceed 10%, benefiting from the Bucyrus International Inc. acquisition, which closed in mid-2011. We also expect that profitability will remain good, with adjusted EBITDA margin of
