Fitch: spinoff unlikely to affect Dover ratings
Fitch says planned spinoff unlikely to affect current ratings of Dover
CHICAGO (AP) -- Fitch Ratings said Tuesday that it doesn't think Dover's planned spinoff of some of its communications technology businesses will affect its current ratings.
On Thursday the equipment maker announced that its board approved the spinoff of the businesses into a new publicly traded company. The company will be known as Knowles Corp., and it will make acoustic components such as microphones, speakers, receivers and transducers. It also will produce communication infrastructure components.
The spinoff is expected to be completed early next year.
While Fitch said the spinoff is unlikely to affect ratings, it said that ratings could be taken into negative territory if the transaction does not reduce Dover Corp.'s debt levels.
Fitch currently rates Dover's long-term issuer default rating and senior unsecured notes an "A."
Shares of Dover added 39 cents to $79.58 in afternoon trading.
