TEXT-S&P reports on global construction equipment manufacturers

Sept 20 - After a fairly steady rebound for two years following the deep
trough of 2009, construction equipment manufacturers are facing a mixed picture
by region, Standard & Poor's Ratings Services said in a report published
yesterday on RatingsDirect titled, "Global Construction Equipment Manufacturers
Face Weakness In China And Risks Worldwide."

"Our baseline economic estimates call for the global economy to continue its
slow recovery in 2013, which should support modest growth in demand for the
construction equipment industry next year, but significant risks persist,"
said Standard & Poor's credit analyst Dan Picciotto. The economy remains
fragile, with the potential for a sovereign crisis in Europe, further slowing
of GDP growth in emerging markets (particularly China), and risks associated
with the looming "fiscal cliff" in the U.S. at the end of 2012. Any of these
factors could derail economic growth and general business confidence, which
could result in skittishness about orders for durable goods, including
construction equipment.

The construction equipment industry is feeling the pinch in some key markets.
Demand has fallen significantly in China, the world's biggest equipment
market, which has hurt rated companies that operate there to different degrees
depending on their geographic footprints. Moreover, we think a further Chinese
slowdown would eventually hurt business confidence and commodity prices
worldwide. We think demand in broader Europe will be about flat this year but
still well below its prior peaks in 2007. One bright spot has been the
relatively good performance of the equipment market in North America, which is
still recovering from a steep decline in demand that occurred in 2009.

The report is available to subscribers of RatingsDirect on the Global Credit
Portal at www.globalcreditportal.com. If you are not a RatingsDirect
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280
or sending an e-mail to research_request@standardandpoors.com. Ratings
information can also be found on Standard & Poor's public Web site by using
the Ratings search box located in the left column at www.standardandpoors.com.