S&P: Terex on negative watch

Standard & Poor's said it placed all of the ratings on Terex Corp., including the BB corporate credit rating, on CreditWatch with negative implications.

The negative watch placement follows news that Terex entered into an all-stock merger agreement with Konecranes plc, S&P said.

In conjunction with the transaction, the combined entity, called Konecranes Terex, plans to fund a $1.5 billion share repurchase program with a combination of free cash flow and additional debt over a 24-month period after the transaction closes, the agency said.

As a result, the company's credit measures could weaken to levels that no longer support the BB corporate credit rating, S&P said.

The newly announced share repurchase program could indicate a shift to a more aggressive financial policy, the agency added.

The watch will be resolved after a full review of the company’s business and financial risk profiles, S&P said.

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