Moody's gives Case notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the $1 billion of notes issued by Case New Holland Inc., which are guaranteed by its parent company CNH Global NV and by its direct and indirect subsidiaries.

Moody's said it also affirmed CNH's existing ratings: Ba3 corporate family rating and probability of default rating, and SGL-3 speculative-grade liquidity rating.

The outlook remains stable.

The agency added that proceeds of the issuance will be used to redeem about $500 million of outstanding notes and repay a portion of the about $2.4 billion of debt due to Fiat SpA, which is the 90%-owner of CNH.

The Ba3 rating recognizes CNH's weak operating performance and stressed credit metrics in the aftermath of the severe downturn in global construction equipment markets and the slowdown in agricultural equipment demand, the agency said.

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