Fitch lifts some of Cummins ratings
NEW YORK (AP) — Fitch Ratings is boosting some of its ratings for Cummins, citing the engine maker's improving profitability, financial flexibility and other factors.
The ratings agency raised Cummins Inc.'s issuer default rating and its long-term debt ratings one notch in investment-grade status to "A'' from "A-."
The company's outlook is stable.
Fitch said Friday that if Cummins finds itself dealing with worsening economic conditions, its credit metrics may deteriorate modestly but will stay solid. The ratings agency that said the Columbus, Ind., company also has the benefit of being geographically diverse and developing new technologies that are becoming more important to customers because of stricter emissions and fuel-economy regulations.
On Tuesday, Cummins lowered its full-year revenue forecast and announced plans to eliminate up to 1,500 jobs.
Shares of Cummins shed 21 cents to $86.28 in midday trading.