Standard & Poors (S&P) revised its outlook on Caterpillar and Caterpillar Financial Services to negative from stable on the expectation that Caterpillar’s energy and mining end markets will remain challenges over the next 12 months.
S&P’s Global credit analyst said, “The negative outlook reflects our expectation that the pressure on Caterpillar’s end markets will persist into 2017,” the analyst said, “In addition, the outlook reflects the risk that the company’s profitability may not begin to stabilize next year as there is limited cushion for any further deterioration in its credit measures over the next 12-24 months given the length of the current downturn.”
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