TEXT - S&P rates Pentair Finance S.A.

Mon Nov 19, 2012 11:32am EST

Nov 19 - Standard & Poor's Ratings Services said today it assigned its 'BBB'
issue-level rating to Pentair Finance S.A.'s proposed senior unsecured notes.
The rating is the same as the corporate credit rating on Pentair Finance S.A.'s
parent company, Pentair Ltd. (Pentair). The company announced that it expects to
use the proceeds to repay commercial paper and for general corporate purposes.
The company also announced an exchange offer for notes issued by subsidiary
Pentair Inc. The proposed notes will be issued under rule 144A and be guaranteed
by Pentair.

The ratings reflect Pentair's "satisfactory" business risk profile, which 
reflects its leading market position (No. 1 or 2 in most of its end markets) 
and good geographic diversity (more than half of its revenues generated 
outside of the U.S.), offset by its continued presence in cyclical and 
fragmented end markets. Pro forma for its recent merger with Tyco 
International Ltd.'s (A-/Stable/A-2) flow control business, we expect the 
company to generate about $7.7 billion of revenues in 2012 in three segments: 
water and fluid solutions (about 45% of revenues), flow control (30%), and 
equipment protection solutions (25%). Cost synergies should allow the company 
to maintain operating margin of about 15%, which should result in leverage 
metrics within our expectation of 2.0x-2.5x for the rating. 


RELATED CRITERIA AND RESEARCH
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- Research Update: Pentair Inc. Ratings Raised, Withdrawn After Merger; 
Pentair Ltd. Assigned 'BBB' Rating, Outlook Stable, Sept. 28, 2012
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008


RATINGS LIST 

Pentair Ltd.
 Corporate Credit Rating         BBB/Stable/A-2

New Rating

Pentair Finance S.A.
 Senior Unsecured
  Sr unsecd notes                BBB
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