S&P: Moog on watch

Standard & Poor's said it has placed its ratings on Moog Inc., including the BB+ corporate credit rating, on Creditwatch with negative implications.

"The Creditwatch placement follows Moog's announcement that it is reducing its earnings guidance for this year, largely because of much lower demand in industrial markets and in commercial aerospace," said S&P credit analyst Christopher DeNicolo.

The company said it is lowering its fiscal 2009 ending Sept. 30 earnings guidance to $2.20 a share from $2.85 a share and will likely take a further $0.25 a share in restructuring charges in the second half of the year to better align costs with the lower volumes, S&P added.

In addition, the company said revenues are now likely to be $1.85 billion, down from their previous expectations of about $2 billion, the agency said.

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