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Bulletin: Johnson Controls Inc.'s Offer To Buy Certain Visteon Assets Has No Effect On JCI Ratings May 10 Product Image

Bulletin: Johnson Controls Inc.'s Offer To Buy Certain Visteon Assets Has No Effect On JCI Ratings May 10

  • ID: 2087603
  • May 2010
  • Standard & Poors

Abstract
NEW YORK (Standard & Poor's) May 21, 2010--Standard & Poor's Ratings Services said today that the announcement by Johnson Controls Inc. (JCI; BBB/Postive/A-2) that it is offering $1.25 billion in cash to acquire the interiors and electronics businesses of bankrupt Visteon Corp. has no immediate effect on JCI's rating and outlook. Although we believe some of the assets that would be subject to the acquisition could be a good strategic fit for JCI, a purchase would introduce operational complexities. In addition, JCI's financial risk could rise depending on how it finances the transaction. We estimate that even if the Visteon assets had only minimal earnings under JCI's ownership, adjusted debt to EBITDA should still remain at or below 3x, compared...

Companies mentioned in this report are: Johnson Controls Inc.
Action: Bulletin

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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