Moody's lowers Terex view to negative

Moody's Investors Service said it changed the outlook of Terex Corp. to negative from stable and lowered the company's speculative-grade liquidity rating to SGL-3 from SGL-2, but affirmed the corporate family rating at B1.

Moody's said the change in outlook reflects the continued delays that Terex is experiencing in filing audited financial statements for 2004 and subsequent quarterly periods. Moody's believes the SEC's recently announced investigation that relates primarily to Terex's restatement of its financials for the period 2000 through 2003 adds to the uncertainty that the company will be able to file its financial statements before the Sept. 15 expiration of current bank waivers.

The confirmation of the B1 corporate family rating reflects Terex's sound competitive position in the domestic construction equipment markets and the favorable outlook for revenue growth as demand for such equipment is experiencing a strong cyclical recovery, the agency said.

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