Moody's rates Terex loans Ba2

Moody's Investors Service said it assigned a Ba2 (LGD 2, 15%) rating to Terex Corp.'s proposed $500 million revolver and $750 million term loan and affirmed its B2 corporate family rating and probability of default ratings.

The outlook is negative.

The facilities will be used to fund the company's tender offer for at least 51% of Demag Cranes AG. The company's speculative-grade liquidity rating was maintained at SGL-2, reflecting the expectation that good liquidity will be maintained until the transaction is consummated, Moody's said.

The ratings reflect the loans' first-lien status in the capital structure, the agency said.

The ratings also consider that the acquisition reduces Terex's leverage, the agency said, and improves its geographic and product diversity.

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