Standard&Poor's Ratings Services' ratings on Wisconsin-based Oshkosh Corp. reflect its significantly improved credit measures over the past year, largely due to the company's defense segment delivering on several large orders and its use of cash flow to reduce funded debt balances. We expect Oshkosh's industrial businesses will improve in the next year from very low levels of activity, partially offsetting reduced sales and profitability at the defense segment in fiscal 2011. We believe the firm's credit measures will weaken from their current very good levels, but still remain consistent with our expectations for a higher rating if Oshkosh can successfully transitions away from its sizable mine-resistant ambush protected, all-terrain vehicle (M-ATV) program. Profitability is likely to decline significantly
