Moody’s lowers Parker-Hannifin view to negative

Moody’s Investors Service said it affirmed Parker-Hannifin Corp.’s A2 senior unsecured and prime-1 ratings, but revised the outlook to negative from stable.

The change in outlook follows news that the company plans to repurchase $2 billion to $3 billion of shares over the next two years, which Moody’s said it expects to be at least partially debt-funded.

The negative outlook reflects a belief that funding the announced share repurchases could require a meaningful increase in debt, the agency said.

Depending on their magnitude and pace, the resultant higher debt and financial leverage, along with the more shareholder favorable policy it would represent, could pressure the ratings lower, Moody’s said.

Still, the company has delivered solid results of late and is expected to continue to do so, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.