S&P puts Schneider Electric on negative watch

Standard & Poor's said it placed the A- long-term corporate credit rating on Schneider Electric SA on CreditWatch with negative implications.

The agency also said it affirmed its A-2 short-term corporate credit rating on Schneider.

The CreditWatch placement follows news that Schneider is in advanced discussions to acquire Invensys.

The acquisition of Invensys would strengthen Schneider's positioning in the industry automation business segment, S&P said.

At this point in time, Schneider is only present in discrete automation and does not have a meaningful position in the continued automation processes, where instead Invensys has a more robust footing, the agency said.

Invensys's significant exposure to North America and to fast growing countries would be positive for Schneider and could give the combined group access to new customers, S&P said.

However, Invensys's average profitability measures are below those of Schneider, the agency said.

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