Moody's keeps Dover's rating intact
Moody's leaves Dover's rating in place following spinoff plans
NEW YORK (AP) -- Moody's Investor's Service said Friday that it is keeping Dover Corp.'s ratings intact following the equipment maker's plans to spin off its communication technologies businesses.
Dover said Thursday that its board approved the plans to spin the business, to be known as Knowles Corp., into a new publicly traded company. The company's products will include acoustic components such as microphones, speakers and receivers. It also will produce communication infrastructure components.
Moody's said Dover will keep its investment-grade A2 rating, as well as its Prime-1 short-term rating. The rating outlook remains stable, but the rating agency said that the proposed spinoff is a negative credit development that should eat up the company's cushion in its current rating status.
Dover, based in Downers Grove, Ill., said the move will allow both businesses to pursue a more aggressive growth strategy. The spinoff is expected to be completed early next year.
The company's shares jumped Thursday on the announcement but had settled by Friday, falling 35 cents to close the day at $79.19, in line with market trends.
