Moody's lowers Trinity Industries' loan to Ba2

Moody's Investors Service downgraded Trinity Industries senior secured bank facilities to Ba2 from Ba1. The outlook is stable.

The downgrade reflects the expectation of continued weak financial results and modestly negative free cash flow from operations over the near term, an increase in adjusted debt as the finance company continues to fund equipment sales and the company's limited ability to absorb unexpected material financial or operational shocks until railcar demand is much stronger, Moody's said.

Trinity initiated a number of measures to stabilize its capital structure and improve liquidity, including: a recently completed new convertible preferred stock issue, some primary equity and, an extension of the maturity of its bank revolver to 2005 and the short term warehousing financing for Trinity Leasing which terms out in 2004. However, the company's capital structure remains relatively short term and bank dependent, and refinancing risks will increase after fiscal year 2004.

S&P withdraws Aerostructures' ratings

Standard & Poor's withdrew its ratings on Aerostructures Corp., including the BB- corporate credit rating.

The company has been acquired by Vought Aircraft Industries Inc. and all of its outstanding rated debt has been repaid.

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