Announcement of Periodic Review: Moody’s announces completion of a periodic review of ratings of Caterpillar Inc.
Global Credit Research – 02 Sep 2020
New York, September 02, 2020 — Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Caterpillar Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Caterpillar’s A3 senior unsecured rating reflects the company’s leading position in its key markets (i.e. construction, energy & transportation and mining equipment), significant global dealer network, and broad geographic footprint. Caterpillar also has strong financial service operations with healthy liquidity. However, the ratings reflect the cyclicality of Caterpillar’s end markets, as well as the ongoing capital market access needs of the company due to its financial arm. The ratings also consider the company’s willingness to maintain cyclical downturn disciplines during all phases of the business cycle, as well as its strong liquidity profile. Moody’s expects that credit metrics are likely to be weak in 2020 from the impact of COVID-19.
This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodologies used for this review were Manufacturing Methodology published in March 2020, Captive Finance Subsidiaries of Nonfinancial Corporations published in August 2019 and Finance Companies Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Bruce Clark Senior Vice President Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Robert Jankowitz MD - Corporate Finance Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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