Moody's lowers Oshkosh

Moody's Investors Service said it downgraded Oshkosh Corp.'s corporate family and probability-of-default rating to B2 from Ba3 and its $3.25 billion (originally $3.65 billion) first-lien senior secured bank credit facility lowered to B2 (LGD3, 45%) from Ba3 (LGD3, 49%).

The company's speculative grade liquidity rating is lowered to SGL-3 from SGL-2.

Moody's said the actions follow the company's announcement reducing its fiscal 2009 outlook for several of its businesses and that it will need to seek financial covenant relief under its credit agreements. Ratings remain under review for downgrade pending resolution of the negotiations with its banks.

The downgrade reflects an expectation of further erosion in Oshkosh's credit metrics due to deterioration across several of the company's business units, with the access equipment business being the most severely affected, the agency said.

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