NEW YORK (TheStreet) -- Moody's has raised its ratings for Cummins' (CMI) - Get Report stock by one notch after the company declared a quarterly cash dividend boost on its common stock by 50% to 26.25 cents a share from 17.5 cents per share.
The company's ratings status is now several steps above junk territory at Baa2.
Moody's said the company's successes in dealing with depressed periods in the North American truck market through cost cutting and expansion into the thriving emerging markets have contributed to the ratings boost.
"As a result of this strategy Cummins was able to maintain solid debt protection measures despite the most severe downturn in the North American medium and heavy-duty truck industry, and the broader weakening in the global economy," Moody's said in a written statement.
Cummins currently has about $800 million in free cash.
Cummins stock finished Tuesday's trading session up 4.3% to $73.73.
-- Reported by Andrea Tse in New York
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