Moody’s cuts Manitowoc, rates MTW Cranes notes B1

Moody's Investors Service said it downgraded Manitowoc Co., Inc.'s corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD to reflect the anticipated spin-off of the Foodservice business.

Concurrently, the agency assigned a B1 rating to MTW Cranes Escrow Corp.'s proposed $250 million eight-year second-lien senior secured notes.

Proceeds from the proposed debt and a new ABL revolving credit facility (unrated) combined with a roughly $1.3 billion distribution from the Foodservice business are expected to be used to repay Manitowoc's existing debt and allow the company to effectuate the split of the Cranes and Foodservice business.

The ratings on the existing bank credit facilities and senior unsecured notes remain unchanged at Ba1 and B2, respectively, and are to be withdrawn once the transaction closes. The speculative grade liquidity rating was affirmed at SGL-2 representing a good anticipated liquidity profile.

The outlook is stable.

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