Moody's lifts Manitowoc view to positive

Moody's Investors Service said it raised The Manitowoc Co., Inc.'s outlook to positive from stable.

Moody's also affirmed the debt ratings of senior unsecured notes at B1, senior subordinated notes at B2 and corporate family rating at Ba3.

Moody's said that the rating action is prompted by the redemption of the €175 million senior subordinated notes due 2011, which represented about 40% of the company's fiscal year 2005 debt. In conjunction with strong operating performance, the reduction in debt is expected to result in improvement in credit metrics.

These strengths, however, are balanced against the ongoing cyclicality of the construction market, Moody's said.

The positive outlook reflects Moody's expectations that Manitowoc's debt-protection measures will continue to improve as a result of the strong demand in the non-residential construction market, the main driver of the crane business and the prudent financial policies being embraced by management.

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