Moody's lowers Terex to SGL-3

Moody's Investors Service said it lowered Terex Corp.'s speculative-grade liquidity rating to SGL-3 from SGL-1 and placed its other ratings under review for possible downgrade, including its Ba2 corporate family and probability-of-default ratings, Baa2 (LGD1, 9%) $896 million senior secured bank credit facility, Ba1 (LGD3, 35%) $300 million senior subordinated notes due 2014 and Ba3 (LGD5, 76%) $800 million senior subordinated notes due 2017.

The review follows Terex's significantly reduced revenue guidance for 2009. The agency said prospective performance has been adversely affected by lower orders received across Terex's businesses as well as the impact of the higher value of the dollar and that the weaker business results imply greater leverage, lower interest coverage and reduced funds from operations through 2009.

The lower speculative-grade liquidity rating reflects the likely erosion of the company's liquidity profile resulting from the business deterioration and the company's ability to access its core revolving credit facility, Moody's said.

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