Fitch upgrades Cummins' issuer default and long-term debt ratings to A from A-; outlook stable
October 25, 2012
– Cummins Inc. (NYSE: CMI) announced today that Fitch Ratings has upgraded the company's Issuer Default Rating (IDR) and long-term debt ratings. The rating is an upgrade from "A-" to "A" with a stable outlook.
In making the announcement, Fitch indicated the upgrade was based on the company's, "strong operating profile, consistently low leverage, financial flexibility, and long term improvement in operating margins." Fitch also commented on CMI's past performance and ability to generate positive cash flow during an economic downturn.
"Our strong balance sheet gives us the flexibility to continue to invest in future growth opportunities and increase returns to shareholders," stated Tom Linebarger, Chairman and Chief Executive Officer. "Fitch's announcement today is recognition of the strong financial discipline we have employed over a number of years."
Fitch also commented on the company's liquidity and well-funded pension plans. Stricter emissions and fuel economy regulations are additional indicators that the company is well positioned.
"The Company has generated strong cash flow over a number of years, allowing us to continue to invest even during periods of weaker demand," noted Pat Ward, Vice President and Chief Financial Officer. "This ability to continue investing has allowed the Company to strengthen its competitive position through technology leadership and the expansion of our global footprint."
Fitch Ratings is a global rating agency dedicated to providing value beyond the rating through objective and balanced credit opinions, research and data. A full copy of the press release regarding the Cummins upgrade can be found at: www.fitchratings.com.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins employs approximately 44,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.85 billion on sales of $18.0 billion in 2011. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at @Cummins and on YouTube at CumminsInc.
Source: Cummins Inc.
Carole Casto, 317-610-2480
Executive Director - Corporate Communications
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