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Fitch Affirms and Withdraws Ratings on Johnson Controls



  Fitch Affirms and Withdraws Ratings on Johnson Controls

Business Wire

CHICAGO -- June 4, 2013

Fitch Ratings affirms and simultaneously withdraws the following ratings on
Johnson Controls, Inc. (JCI) and its subsidiaries:

Johnson Controls, Inc.

--IDR 'BBB+';

--Senior unsecured credit facilities 'BBB+';

--Senior unsecured long-term debt 'BBB+';

--Short-term IDR 'F2';

--Commercial paper 'F2'.

York International Corp.

--IDR 'BBB+'.

The Rating Outlook is Negative.

Fitch has decided to discontinue the ratings, which are uncompensated.

The ratings incorporate JCI's leading market positions, diverse customer base,
and substantial service and aftermarket revenue in the Power Solutions and
Building Efficiency segments. The company is well positioned to benefit from
demand related to environmental sustainability and energy efficiency, and from
growth in emerging regions.

The Negative Outlook reflects concerns about weak operating performance,
particularly in the Automotive Experience business, negative annual free cash
flow (FCF) and higher debt and leverage. At March 31, 2013, debt/EBITDA was
2.6x compared to 2.3x at the end of fiscal 2012 and 1.9x at the end of fiscal
2011. Leverage would be somewhat lower when including equity income from joint
ventures. An improvement in JCI's operating performance and credit metrics
will depend on the effectiveness of restructuring actions initiated in the
last half of fiscal 2012 and second quarter of 2013, as well as stabilization
in European automotive production which has declined to a low level. FCF
during the first half of 2013 was negative but improved from the year earlier
period.

If JCI's cost structure is reduced and weak demand in Europe stabilizes, Fitch
believes the company could achieve its 2013 FCF target of $1.2 billion before
dividends, including the impact of lower cash requirements to support new
platform launches and JCI's focus on core businesses. These improvements could
potentially address some of the concerns incorporated in the negative rating
outlook. In addition, the company announced in March 2013 it is exploring the
potential divestiture of its automotive electronics business, and any cash
proceeds would boost near-term cash and liquidity. JCI expects to reduce net
debt by approximately $1 billion during the second half of fiscal 2013.

Additional information is available at 'www.fitchratings.com'. The issuer did
not participate in the rating process or provide additional information,
beyond the issuer's available public disclosure.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology', Aug. 8, 2012.

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=792806

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Primary Analyst
Eric Ause
Senior Director
+1-312-606-2302
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60610
or
Secondary Analyst
Craig Fraser
Managing Director
+1-212-908-0310
or
Committee Chairperson
John Culver
Director
+1-312-368-3216
or
Media Relations:
Brian Bertsch
+1-212-908-0549
brian.bertsch@fitchratings.com
or
Business and Relationship Management:
Anna Laudon
+1-212-908-1715
anna.laudon@fitchratings.com.
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