Moody’s revises Terex view to stable

Moody's Investors Service said it affirmed all debt ratings of Terex Corp., including the corporate family rating at B1, probability of default at B1-PD, senior secured at Ba1 and senior unsecured at B2.

The speculative grade liquidity rating is SGL-2.

The outlooks for Terex and Terex International Financial Services Co. were both changed to stable from positive.

Moody’s said the outlook change reflects the plans to merge with Konecranes plc (not rated) in an all-stock transaction sometime next year, as well as the weak operating results at most of Terex's operating units.

The agency noted that the merger is not expected to close until mid-2016, and the synergies planned will take quite some time after that to be realized. There could be meaningful integration challenges in the process, even though the merger is structured as roughly a merger of equals.

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