S&P rates Caterpillar notes A

Standard & Poor's said it assigned an A rating to Caterpillar Inc.'s (A/stable/A-1) $1.5 billion of five-, 10- and 30-year notes.

"The rating on Caterpillar reflects the company's strong competitive business position in the cyclical global construction equipment market, its solid cash flow protection and our expectation that the company will generate acceptable earnings measures, even at the bottom of an economic cycle," S&P analyst Dan Picciotto said in a statement.

Caterpillar's business profile benefits from very good geographic diversity and reasonable end-market diversity, the agency said.

Ratings incorporate an expectation of volatility in operating performance and the company has the financial capacity to weather downturns while maintaining overall credit quality, the agency noted.

The company has a total debt-to-EBITDA ratio of less than 1.5x.

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