Moody's cuts Titan notes

Moody's Investors Service said it downgraded Titan International Inc.'s $200 million 8% senior unsecured global notes due 2012 to Caa1 LGD 5, 80% from B3 LGD5, 71%.

Titan's existing B2 corporate family, B2 probability of default and SGL-2 speculative-grade liquidity ratings have been affirmed, the agency said.

The notes rating downgrade follows the company's Dec. 12 credit agreement amendment, which increased the size of Titan's senior secured revolving credit facility commitment to $250 million from $125 million, Moody's said, adding that Titan has stated that the revolving credit facility was increased to add financial capacity and flexibility for opportunities that may develop in 2008.

According to the agency, Titan is executing a "realignment" strategy whereby its manufacturing mix is shifting away from agricultural markets and toward higher margin off-the-road wheels and tires.

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