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Parker-Hannifin Corporation -- Moody's assigns Baa1 to Parker-Hannifin's new senior unsecured notes

Moody's Investors Service (Moody's) assigned Baa1 senior unsecured ratings to Parker-Hannifin Corporation's (Parker-Hannifin) recently announced multi-tranche, benchmark-sized bond issuances. The proceeds from this issuance, along with a delayed-draw term loan (unrated) and commercial paper borrowings, are expected to fund the nearly $3.7 billion acquisition of LORD Corporation (LORD) that was announced April 2019 and is expected to close late-2019. Parker-Hannifin's Baa1 senior unsecured rating reflects the company's position as a leading supplier of motion and control systems and components, with considerable scale - pro forma revenues approaching $16 billion - and largely favorable long-term market opportunities, as indicated by a solid organic growth rate trend that is expected to be 2% - 4% over the next couple of years.