Fitch to rate Parker Hannifin notes A

Fitch Ratings said it expects to assign an A rating to Parker Hannifin Corp.'s planned issuance of senior unsecured debt, which is expected to include a mix of 10-year and 30-year fixed-rate notes.

The issuer has issuer default, senior unsecured debt and credit facility ratings at A and short-term issuer default and commercial paper ratings at F1.

The outlook is stable.

Proceeds will be used to pay down commercial paper.

For the 12 months ended March 31, the issuer's debt-to-EBITDA ratio was 1.1 times before two acquisitions announced in April.

Leverage would rise modestly but remain at a manageable level, and the impact of higher debt level is partly offset by the company's solid financial results, Fitch said.

Ratings reflect successful integration of past acquisitions, ability to generate strong free cash flow and conservative financial policies, the agency said.

Concerns are higher leverage ratios and the possible impact of current economic uncertainty in the United States, the agency said.

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