S&P Places Joy Global (JOY) Ratings on CreditWatch Positive

S&P Global Ratings said that it has placed all of its ratings on Joy Global Inc. (NYSE: JOY), including our 'BB+' corporate credit rating, on CreditWatch with positive implications.

"The CreditWatch placement follows Joy Global Inc.'s announcement that it has signed a definitive agreement to be acquired by a subsidiary of Komatsu Ltd. in an all-cash transaction valued at $3.7 billion (including Joy's outstanding debt)," said S&P Global credit analyst Svetlana Olsha. "The positive CreditWatch placement reflects that Joy is being acquired by an entity with a stronger credit profile."

We expect to raise our ratings on Joy Global after the acquisition closes. We will likely align our ratings on Joy with our ratings on Komatsu if we deem Joy to be a core subsidiary. To make this assessment, we will consider the extent to which Komatsu intends to integrate and support Joy Global.

If all of Joy Global's rated debt is repaid at the close of the transaction, we will likely withdraw all our ratings on the company.

Alternatively, if the proposed transaction does not close as we expect, we will likely reassess all of our ratings on Joy Global and remove them from CreditWatch.

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