Tear Sheet: Carrier Global Corp.

Specifically, we forecast S&P Global Ratings'-adjusted debt leverage will be in the high-3x area by the end of 2023, remaining below our downgrade threshold of 4x. We assume the company will utilize excess cash flow to prioritize debt repayment, and we forecast its S&P Global Ratings'-adjusted leverage will decrease to the low- to mid-3x area in 2024. We believe Carrier is committed to reducing leverage given it has publicly maintained its 2x net leverage target. The company also announced it would pause share repurchases until leverage falls toward its target and it has already partially funded the Viessmann acquisition with short-dated (and pre-payable) term loans. Further, we believe the company would likely deploy at least a portion of potential proceeds

...November 2, 2023 We continue to forecast Carrier Global Corp.'s S&P Global Ratings'-adjusted leverage will remain under 4x through 2024, pro forma to include Viessmann's EBITDA and our expectation for related acquisition financing. Specifically, we forecast S&P Global Ratings'-adjusted debt leverage will be in the high-3x area by the end of 2023, remaining below our downgrade threshold of 4x. We assume the company will utilize excess cash flow to prioritize debt repayment, and we forecast its S&P Global Ratings'-adjusted leverage will decrease to the low- to mid-3x area in 2024. We believe Carrier is committed to reducing leverage given it has publicly maintained its 2x net leverage target. The company also announced it would pause share repurchases until leverage falls toward its target and it has already partially funded the Viessmann acquisition with short- dated (and pre-payable) term loans. Further, we believe the company would likely deploy at least a portion of potential proceeds...

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