Overview -- Globally diversified industrial manufacturer Ingersoll-Rand Plc announced today that it is planning to spin-off its security business to shareholders. -- The company's financial policy may be somewhat more aggressive as a result of this action, and this will likely result in somewhat weaker-than-expected credit metrics. -- We are placing our 'BBB+' corporate credit and unsecured debt ratings on CreditWatch with negative implications. -- The short-term and commercial paper ratings are unaffected. Rating Action On Dec. 10, 2012, Standard & Poor's Ratings Services placed its 'BBB+' corporate credit and unsecured debt ratings on Ireland-based Ingersoll-Rand PLC on CreditWatch with negative implications. The short-term and commercial paper ratings are unaffected. Rationale This action results from the potential weaker credit metrics as a result of its planned spin-off of its global security business to shareholders. We believe that the divestiture of its global security business will still support a "strong" business risk profile. However, the loss of considerable EBITDA would result in weaker credit metrics on a pro forma basis. We estimate that following this transaction credit metrics could be weaker than our existing expectations of debt to EBITDA of about 2x and funds from operations to total debt of 35% to 40%. The transaction could possibly close within the next 12 months. CreditWatch We plan to review the details of this transaction, including a review of financial policy with management. In addition, we plan to review the company's strategy, new share repurchase plan, and debt refinancing. Our CreditWatch listing could result in a downgrade, an affirmation, or a negative outlook. Related Criteria And Research -- Summary: Ingersoll-Rand PLC, Aug. 7, 2012 -- Use Of CreditWatch And Outlooks, Sept. 14, 2009 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 Ratings List Ratings Placed On CreditWatch To From Ingersoll-Rand PLC Ingersoll-Rand International Holding Ltd. Ingersoll-Rand Global Holding Co. Ltd. Ingersoll-Rand Co. Ltd. Ingersoll-Rand Co. Corporate Credit Rating BBB+/Watch Neg/A-2 BBB+/Stable/A-2 Trane U.S. Inc. Ingersoll-Rand International Holding Ltd. Ingersoll-Rand Global Holding Co. Ltd. Ingersoll-Rand Co. Senior Unsecured BBB+/Watch Neg BBB+ Ratings Affirmed Ingersoll-Rand Global Holding Co. Ltd. Ingersoll-Rand European Financial Services PLC Ingersoll-Rand Co. Ltd. Ingersoll-Rand Co. Commercial Paper A-2 Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.