Moody's: Joy Global outlook stable

Moody's Investors Service said it changed the outlook for Joy Global Inc. to stable from positive and affirmed the company's Baa3 senior unsecured ratings.

The agency said a decline in orders for Joy's original equipment and a softening of bookings for aftermarket parts and services in the wake of weaker demand for metals and mineral commodities makes the potential for a rating upgrade unlikely at this time, hence the stabilized outlook.

Joy's rating is supported by its strong credit metrics, commanding and secure market position in several mining equipment product segments, large installed base of equipment, the stability and higher profitability of its aftermarket revenue stream and its global presence and positioning to serve growing emerging markets such as China, India and Russia, Moody's said.

Factors that constrain Joy's rating are its potential volatility due to its dependence on the highly cyclical mining industry and commodity markets, its underfunded pension plans and the large proportion of net sales and assets represented by the company's foreign subsidiaries, which do not guarantee the notes, and which introduces foreign exchange risk, the agency said.

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