Moody's may up The Shaw Group

Moody's Investors Service said it placed the long-term ratings of The Shaw Group Inc. on review for possible upgrade following the company's announcement that it intends to utilize the proceeds from an about $270 million secondary equity offering to tender for all outstanding 10¾% senior unsecured notes due 2010.

On review are The Shaw Group's Ba2 senior implied rating and 10¾% senior unsecured notes due 2010 and B1 senior unsecured issuer rating.

Moody's said its review will focus on the sustainability of the trend of recently-improved operating performance, quality of earnings relative to non-recurring reserve reversals and revenue from favorable dispute settlement claims, prospects for continued revenue and cash flow growth despite a shrinking project backlog and liquidity.

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