S&P rates Terex loans BB

Standard & Poor's said it affirmed the BB- corporate credit rating on Terex Corp. and assigned a BB rating and 2 recovery rating to the company's proposed $750 million term loan and proposed $500 million revolving credit facility.

The proceeds will be used for its proposed acquisition of Demag Cranes AG

The agency also said it would revise the recovery rating on the company's unsecured notes to 4 from 3 with the rating unchanged at BB-.

The outlook is stable.

Under the proposed transaction terms for the acquisition, S&P said it believes Terex will return credit measures to levels consistent with the BB- corporate credit rating within a year of finalizing the acquisition.

Terex currently has a good liquidity position with large cash balances and availability under its revolving credit facility, the agency said, although the company will use about $600 million of this cash balance for the Demag deal at the current offering price.

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