Moody's rates SPX loans Ba1

Moody's Investors Service said affirmed SPX Corp.'s Ba1 corporate credit rating, Ba2 Liquid Yield Option Notes (LYONs) due 2021 and SGL-1 speculative grade liquidity rating and assigned Ba1 ratings to the company's $1.625 billion in senior credit facilities, which include a $750 million senior term loan due 2010, a €361.9 million senior credit facility due 2010 and a $450 million senior revolving credit facility due 2010 - which is comprised of a $350 million domestic revolver and a $100 million global revolver.

The outlook is stable.

Moody's said the ratings reflect the improvement in SPX's credit metrics and the increase in liquidity resulting from its 2005 recapitalization. On March 31, SPX had $866 million in debt, down from about $2.5 billion at the end of 2004. For the 12 months ended March 31, SPX generated EBITDA of $470 million, resulting in a debt to adjusted EBITDA ratio of 1.7x.

The recent improvement in the company's liquidity and credit profile is offset by the agency's uncertainty regarding the ultimate composition of SPX's business portfolio and the potential for heightened operational and financial risk in the on-going transformation process.

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