Moody's: Terex loan Ba2; notes, convertibles cut

Moody's Investors Service said it affirmed Terex Corp.'s B2 corporate family rating and probability of default rating ratings and assigned Ba2 ratings to the company's new credit facilities, comprised of a $500 million revolver and a $460 million dollar term loan issued by Terex and a €200 million term loan guaranteed by Terex and issued by Terex International Financial Services Co. and various other foreign borrowers.

Moody's noted that it withdrew the previously assigned prospective credit facility ratings due to the change in borrowers while it maintained the negative outlook.

Additionally, the ratings on the company's $300 million of senior global notes were downgraded to B2 (LGD3-48%) from Ba3 (LGD2-29%), and the ratings on the $800 million of senior subordinated notes and $173 million of convertible senior subordinated notes to Caa1(LGD5,82%) from B3 (LGD5,76%).

The agency added that the company's speculative-grade liquidity rating was maintained at SGL-2, reflecting the expectation for good liquidity to be maintained over the next year.

The successful tender for Demag Cranes AG resulted in Terex owning 82% of the company, according to the agency.

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