Fitch Ratings Affs Rtgs Of Deere, John Deere Capital At 'A/ F1'

Business Wire, May 24, 2002

Deere remains subject to a host of industry-specific factors, including global weather, mad-cow fears, hoof- and-mouth outbreaks, currency fluctuations, trade tensions, U.S. and international farm policies, etc. that make the agricultural market exposed to more than just cyclical factors. On the positive side, the new farm bill should benefit Deere beginning in fiscal 2003 by providing clarity to farmers on the existence and extent of price support payments on which equipment investment decisions can be made.

The economic stimulus package should also provide a benefit through increased depreciation provisions. The Negative Rating Outlook is likely to remain in place until improved profitability occurs across Deere's equipment operating segments.

Rating Summary

Deere & Co.
--Senior debt...'A';
--Commercial paper....'F1';
Rating Outlook Negative.

John Deere Capital Corp.
--Senior debt...'A';
--Subordinated debt...'A-';
--Preferred stock...'A-';
--Commercial paper....'F1';
Rating Outlook....Negative.

John Deere Credit Ltd.
(Guaranteed by John Deere Capital Corp.)
--Senior debt...'A';
--Preferred stock...'A-';
--Commercial paper.....'F1';
Rating Outlook....Negative.

John Deere Limited (Canada)
(Guaranteed by Deere & Co.)
--Commercial paper....'F1'.

John Deere Limited (Australia)
(Guaranteed by Deere & Co.)
--Senior debt...'A';
--Commercial paper....'F1';
Rating Outlook...Negative.

John Deere Credit Inc.
(Guaranteed by Deere & Co.)
--Senior debt...'A';
--Commercial paper....'F1'
Rating Outlook...Negative.

John Deere Bank S.A.
(Guaranteed by John Deere Capital Corp.)
--Senior debt...'A';
--Commercial paper.....'F1';
Rating Outlook....Negative.

John Deere B.V.
(Guaranteed by Deere & Co.)
--Senior debt...'A';
--Commercial paper....'F1';
Rating Outlook...Negative.