Moody's ups Terex notes

Moody's Investors Service said it upgraded Terex Corp.'s senior unsecured notes to Ba3 from B2 and senior subordinated notes to B3 from Caa1.

The upgrades consist of the company's senior subordinated convertible exchangeable bond/debenture to B3 (LGD 5, 76%) from Caa1 (LGD 5, 81%); senior subordinated regular bond/debenture to B3 (LGD 5, 76%) from Caa1 (LGD 5, 81%); senior secured bank credit facility to LGD 1, 6% from LGD 1, 8%; and senior unsecured regular bond/debenture to Ba3 (LGD 1, 6%) from B2 (LGD 4, 51%).

The agency also said it affirmed its corporate family and probability of default ratings at B2, speculative-grade liquidity rating at SGL-2 and senior secured bank credit facility at Ba2.

The outlook remains stable.

The ratings reflect the company's recent operating improvement and the reduction in its net losses, Moody's said, along with the expectation of further improvement in profitability as 2011 progresses, Moody's said.

The ratings also consider the company's strong market position, the agency said, and good liquidity profile.

These factors are balanced against its high leverage, weak profitability and increasing competition in some markets, Moody's added.

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