Moody's: Texas Industries view developing

Moody's Investors Service said it affirmed the ratings of Texas Industries Inc. and changed the outlook to developing from stable.

The change in outlook is prompted by the company's announcement that it plans to spin off its steel business. The transaction is intended to be in the form of a tax-free stock dividend to Texas Industries' shareholders and is not anticipated to be concluded until the summer of 2005.

Moody's said there remain a number of details yet to be determined, such as capital structure and financing, as well as a number of conditions to be met. Moody's will continue to monitor progress in these areas and the capital structure and level of debt remaining at Texas Industries post spin will be key factors looked at in assessing the ratings.

Moody's currently rates Texas Industries Inc.'s 10.25% guaranteed notes due 2011 at B1 and senior implied rating at B1.

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