The ratings on Peoria, Ill.-based construction and mining equipment and diesel engine manufacturer Caterpillar Inc. reflect the company's "strong" business risk profile and its "modest" financial risk profile. Standard&Poor's Ratings Services expects that the company will remain No. 1 in the cyclical global construction equipment market and maintain its solid cash flow generation as well as its demonstrated ability to remain profitable, even at the bottom of an economic cycle. In addition to its manufacturing operations, Caterpillar also has a large captive finance company, Caterpillar Financial Services Corp. (CFSC), whose profitability partially offsets volatile performance in the company's equipment operations. We expect the slow global economic recovery and good mining demand to support continued increases in demand for
