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Parker-Hannifin Corporation -- Moody's affirms Parker-Hannifin's Baa1 senior unsecured rating; outlook stable

Moody's Investors Service (Moody's) affirmed the senior unsecured rating of Parker-Hannifin Corporation (Parker-Hannifin) at Baa1 and affirmed the short-term Commercial Paper rating at P-2. The rating affirmations follow the company's announcement to acquire privately-held and unrated LORD Corporation (LORD), a provider of materials science and motion control technologies, for approximately $3.7 billion. Furthermore, post-acquisition leverage will remain high relative to similarly-rated industrial peers well into the second year of the merger (which could be Parker-Hannifin's fiscal year 2021).