Caterpillar
Rating A2, A, A
Issuing entity: Caterpillar Financial Services Corp
Financial Overview
key officials
Douglas Oberhelman: CEO
Ed Rapp: CFO
Jim Duensing:
CFO, Caterpiller Financial services
Mike de Walt
Head of IR
Address:
100 Northeast Adams Street, 61629 Peoria, Illinois
www.cat.com
Qtr End
09/2010
$ (m)
Qtr End
06/2010
$ (m)
Total Assets
37,517
34,509
Total Liabilities
27,185
Revenue
Rating
21-Apr2011 Affirmed 24,805
Short Term Issuer
F1
Default Rating:
21-Apr2011 Affirmed 10,452
9,723
Source: Fitch Ratings
PBT
993
837
EBIT
1,146
939
1,451
Source: Fitch Ratings
Rank Lead manager
Amount No. of
$(m) issues
5,137
2
Citi
4,183
11
17.3
3
Barclays Capital
3,620
9
14.9
4
Société Générale
2,595
8
10.7
5
Goldman Sachs
2,323
5
9.6
17,858
143
73.6
24,249 169
100.0
Subtotal
Total
125
Key recent rating agency
commentary: Fitch
%
share
Bank of America
Merrill Lynch
1
21.2
Source: Dealogic (Jan 1, 2008 to May 31, 2011)
Mandated Lead Arranger – Loans
A / Stable
Key Ratios
Qtr End
09/2010
Qtr End
06/2010
Net Fixed Charge
Cover (x)
8.5
7.3
Op. EBITDA/Gross
Interest Expense (x)
9.9
7.6
Gross Profit/
Revenues (%)
29.5
28.1
Net Income/
Revenues (%)
7.6
7.3
Adjusted Debt Net of
Cash/Op. EBITDAR(x)
1.7
1.9
The ratings incorporate CAT’s strong competitive
position, solid operating performance, diversified
customer base, global manufacturing footprint, an
established and well capitalized dealer network,
strong free cash flow, and strategic benefits from
the pending acquisition of Bucyrus (BUCY). These
strategic benefits should offset several risks related
to the BUCY acquisition, a large part of which will be
funded with debt. After the transaction is completed,
some of CAT’s credit metrics will be weak for the
current ratings, and they will be exposed to economic
downturns and performance missteps. However, Fitch
projects that CAT’s credit metrics will improve within
12-18 months of the acquisition’s closing as a result
of secular growth in the company’s markets and
incremental earnings from completion of the pending
BUCY and MWM Holding GmbH (MWM) acquisitions.
Source: Fitch Ratings
Pos. Mandated lead
arranger
Deal
value $
(m)
No.
%
share
1
JP Morgan
9,825
6
44.2
2
Citi
5,959
4
26.8
3
Société Générale
1,393
2
6.3
4
Mitsubishi UFJ
1,358
8
6.1
5
BofA Merrill Lynch
Subtotal
Total
1,039
2
4.7
19,573
14
88.1
22,214
14
100.0
Source: Dealogic (Jan 1, 2008 to May 31, 2011)
Date
Long Term Issuer
A
Default Rating:
Funds From Operations 1,378
Top Bookrunners – Bonds
rating update: FItch
CDS
— McDonald’s — Caterpillar — Unilever
100
80
60
40
offshore RMB Bonds
Source: EuroWeek
Amount
(RMB)
1bn
TenorCoupon
(years)
(%)
2
2.00
Ja
n
Date
Nov 2010
20
Fe 10
b
20
1
M
ar 0
20
Ap 10
r2
01
M
ay 0
20
Ju 10
n
20
Ju 10
l2
0
Au 10
g
20
Se 10
p
20
O 10
ct
20
No 10
v
20
De 10
c
20
Ja 10
n
20
Fe 11
b
20
1
M
ar 1
20
Ap 11
r2
01
M
ay 1
20
Ju 11
n
20
11
20
Source: Markit
Offshore RMB Bonds EuroWeek 85