Moody's may cut Houghton

Moody's Investors Service said it placed Houghton International, Inc.'s corporate family and probability-of-default ratings of B2 under review for downgrade following the announcement that it plans to merge with a newly formed affiliate of AEA Investors LLC.

Also rated B2 are the company's $90 million guaranteed senior secured term loan due 2011 and $25 million guaranteed senior secured revolving credit facility due 2010.

The possible downgrade reflects the likelihood of greatly increased leverage following the deal, the agency said.

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