Moody's may cut Bucyrus

Moody's Investors Service said it placed the ratings of Bucyrus International, Inc. under review for possible downgrade following the company's announcement that it has signed a definitive agreement to acquire DBT GmbH, a subsidiary of RAG Coal International, for $731 million, primarily cash.

The agency said that the review for downgrade reflects the likelihood of increased leverage following the DBT acquisition, the transforming nature of the acquisition due to DBT's size and products and possible integration issues related to this large cross-border transaction.

Bucyrus currently has a Ba3 corporate family rating, Moody's noted, adding that demand for Bucyrus' surface mining equipment has been strong due to high commodity and metal prices and its customers' desire to maximize production.

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