S&P cuts Ingersoll's debt, may cut again
NEW YORK, May 15 (Reuters) - Standard & Poor's on Tuesday cut its ratings on Ingersoll-Rand Co. (IR.N) and said it may lower them again, citing the company's plan to increase its share buyback program and possible spin-off of its Bobcat machines business.
Ingersoll-Rand said on Tuesday it is reviewing whether to sell or spin off its Bobcat machines and construction-related businesses as it shifts away from capital-intense heavy machinery.
The company also announced plans to double its share buyback program. For details, see [ID:nN15393965].
The ratings actions "reflect the expectation that IR's announced actions will result in increased financial leverage, a more aggressive, shareholder-friendly financial policy, and reduced business-level diversity," S&P said in a statement.
The diversified manufacturer, which is moving away from cyclical businesses, plans to shift toward climate control, industrial and security businesses, it said in a statement. In February, it said it would sell its road construction machinery business to truck maker Volvo (VOLVb.ST).
S&P cut Ingersoll-Rand's corporate credit rating and senior unsecured debt one notch to "BBB-plus," the third lowest investment grade ranking, from "A-minus."
