International Credit Rating Agency, Fitch Ratings, has elevated its outlook on Honeywell International Inc’s (HON) debt program from “Negative” to “Stable”, while reaffirming its investment-grade credit rating on the same.
Solid demand in the company’s end markets as well as fiscal prudence have led the rating agency to reaffirm “A” rating to a higher-than-usual level of debt on the balance sheet. The outlook revision is expected to lower the weighted average interest rate on $7.6 billion of outstanding debt at the end of the most recently completed quarter.
Honeywell’s attractive portfolio of businesses has the potential to earn consistent above-average returns. The company’s focus on working capital discipline, free cash flow generation and balance sheet strength remains a positive attribute in the current weak environment.
The company is a global leader in refrigerants, aerosols, and foam-insulation blowing agents used to replace ozone-depleting Chlorofluorocarbon and Hydro chlorofluorocarbons. These products also improve the energy efficiency of homes, appliances, and commercial refrigeration systems.
The company’s proactive restructuring initiatives have enabled it to navigate through difficult times better than many of its peers, but we have yet to see signs of stabilization in a number of its major end markets.
At Automation and Control Systems, the largest segment by revenue, industrial customers are delaying both capital and operating spending across a number of businesses, discouraged by weak demand.
Honeywell International Inc. (HON) is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, businesses and transportation.
We currently have a Neutral recommendation on Honeywell.
The company is a global leader in refrigerants, aerosols, and foam-insulation blowing agents used to replace ozone-depleting Chlorofluorocarbon and Hydro chlorofluorocarbons. These products also improve the energy efficiency of homes, appliances, and commercial refrigeration systems.
The company’s proactive restructuring initiatives have enabled it to navigate through difficult times better than many of its peers, but we have yet to see signs of stabilization in a number of its major end markets.
At Automation and Control Systems, the largest segment by revenue, industrial customers are delaying both capital and operating spending across a number of businesses, discouraged by weak demand.
Honeywell International Inc. (HON) is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, businesses and transportation.
We currently have a Neutral recommendation on Honeywell.
Read the full analyst report on “HON”
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